Enhanced Prudential Standards for Large U.S. Bank Holding Companies
The Federal Reserve recently issued final rules that apply enhanced prudential standards to large U.S. bank holding companies exceeding certain asset thresholds. The final rules implement portions of the Dodd-Frank Act relating to risk management, capital and leverage, liquidity, stress testing and debt-to-equity limits. Other enhanced prudential standards, such as single-counterparty credit limits and an early remediation framework, remain under development by the Federal Reserve.