The Board of Governors of the Federal Reserve System’s final rule to amend capital planning and stress testing rules was published in the Federal Register.
The final rule adjusts the due date for bank holding companies (“BHCs”) with total consolidated assets of $50 billion or more to submit their capital plans and stress test results. For the 2015 capital plan cycle, such BHCs are required to submit capital plans on or before January 5, 2015, unchanged from prior years. For subsequent cycles beginning in 2016, participating BHCs will be required to submit their capital plans and stress testing results to the Federal Reserve on or before April 5.
The final rule is largely identical to the proposed rule but contains a few key adjustments made in response to public comments. In particular, the final rule adopts the existing limitation on a BHC’s ability to make capital distributions to the extent that the BHC’s actual capital issuances are less than the amount indicated in its capital plan.
The rule will become effective on November 26, 2014.
See: 79 FR 64026.
Related news: FRB Issues Final Rule to Modify for Capital Planning and Stress Testing Regulations (October 22, 2014); FRB, FDIC and OCC Release Supervisory Scenarios to Be Used in 2015 Capital Planning and Stress Testing Program (October 27, 2014).