Regulatory Capital Rules: Risk-Based Capital Requirements for Depository Institution Holding Companies Significantly Engaged in Insurance Activities

Title: Regulatory Capital Rules: Risk-Based Capital Requirements for Depository Institution Holding Companies Significantly Engaged in Insurance Activities
Subject: Risk-based capital
Agency: Federal Reserve
Status: Proposed rule
Summary:
The Board of Governors of the Federal Reserve System (Board) is inviting comment on a proposal to establish risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities. The Board is proposing a risk-based capital framework, termed the Building Block Approach, that adjusts and aggregates existing legal entity capital requirements to determine an enterprise-wide capital requirement, together with a risk-based capital requirement excluding insurance activities, in compliance with section 171 of the Dodd- Frank Act. The Board is additionally proposing to apply a buffer to limit an insurancedepository institution holding company’s capital distributions and discretionary bonus payments if it does not hold sufficient capital relative to enterprise-wide risk, including risk from insurance activities. The proposal would also revise reporting requirements for depository institution holding companies significantly engaged in insurance activities.
FR Doc: 2019-21978

2019-26475 (extended comment period)

Date proposed: Sept. 6, 2019
Comments due date:

Jan. 22, 2020 – extended from previous

Final rule effective date:
Rule compliance date:
Agency release:

Related Reg Report item(s):

Proposal would set capital requirements for insurance firms supervised by the Fed

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