Enhanced Prudential Regulations for Foreign Banks

Enhanced Prudential Regulations for Foreign Banks
Skills and Scale

In December 2012, a year after it proposed enhanced prudential standards for domestic financial institutions, the Federal Reserve Board (FRB) published a proposed rule under the Dodd- Frank Act (DFA), specifically aimed at addressing enhanced prudential standards for foreign banking organizations (FBO’s) with U.S operations. Following a protracted rule-making process during which formal and informal comments were offered by, among others, the foreign banking community and foreign supervisors, the FRB published a final enhanced prudential supervision rule – Regulation YY – on February 18, 2014.  The final rule incorporates requirements for both domestic financial institutions and FBO’s. While the final rule does include some changes to the proposed rule that are beneficial to the foreign banking community, the end result nonetheless may reshape foreign banks’ activities in the United States.

Ready to work with us?