Regulatory Alerts2019-10-24 | 2019-21978Added · Updated
Regulatory Capital Rules: Risk-Based Capital Requirements for Depository Institution Holding Companies Significantly Engaged in Insurance Activities
The Board of Governors of the Federal Reserve System proposes risk-based capital requirements for savings and loan holding companies significantly engaged in insurance activities. The proposal introduces the Building Block Approach to aggregate legal entity capital requirements into an enterprise-wide requirement while excluding certain state-regulated insurance operations. Additionally, the Board proposes a capital conservation buffer to limit distributions and bonus payments if firms lack sufficient capital relative to enterprise-wide risk.