Regulatory Alerts2023-09-19 | 2023-19265Long-Term Debt Requirements for Large Bank Holding Companies, Certain Intermediate Holding Companies of Foreign Banking Organizations, and Large Insured Depository Institutions
The OCC, Federal Reserve, and FDIC propose rules requiring large non-GSIB bank holding companies, foreign banking intermediate holding companies, and large insured depository institutions to maintain minimum amounts of eligible long-term debt. This requirement aims to enhance the resolvability of these entities, reduce costs to the Deposit Insurance Fund, and mitigate financial stability risks associated with high levels of uninsured deposits. The proposal specifies eligible debt instruments, clean holding company requirements, and transition periods to ensure these organizations can absorb losses during resolution proceedings.
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