Continuing work outlined in an advance notice of proposed rulemaking (ANPR), the FRB has proposed risk-based standards for depository institution holding companies (DIHCs) significantly engaged in insurance. The NPR stands by the controversial “building-block” approach (BBA) in the ANPR in concert with proposing a parent-company risk-based standard and buffers to prevent what the Board fears could prove undue capital distributions or discretionary bonuses under stress. The Board’s preliminary impact assessment nonetheless concludes that its approach will not increase regulatory-capital requirements at covered companies.
The full report is available to retainer clients. To find out how you can sign up for the service, click here.