The Federal Reserve adopted a final rule that expands the regulatory relief provided by its small bank holding company policy statement. The rule implements legislation passed by Congress in December that had been a long-standing policy priority for ABA and the state bankers associations.
Specifically, the rule raises the asset threshold of the Fed’s policy statement from $500 million to $1 billion and applies it for the first time to savings and loan holding companies. This will make it easier for community banks and thrifts to issue debt and raise capital.
The rule is effective 30 days after publication in the Federal Register.
Read the rule.