The Federal Reserve Board (“FRB”) rule adopting a new supervisory rating system for large financial institutions was published in the Federal Register. The final rule is effective starting on February 1, 2019.
As previously covered, the FRB will enforce a new rating system for large financial institutions (“LFI”). The new LFI rating system will apply to (i) all domestic bank holding companies and non-insurance, non-commercial savings and loan holding companies (“SLHCs”) with $100 billion or more in total consolidated assets and (ii) U.S. intermediate holding companies of foreign banking organizations with $50 billion or more in total consolidated assets. The existing RFI/C(D) rating system will continue to be applied to community and regional bank holding companies with less than $100 billion in consolidated assets. In addition, the RFI/C(D) rating system will be expanded to apply to certain SLHCs with less than $100 billion in total consolidated assets on February 1, 2019.