Comments on a Federal Reserve proposal to establish risk-based capital requirements for depository institution holding companies that are “significantly engaged” in insurance activities are due Jan. 22 under an extension published in Tuesday’s Federal Register.
The proposed rule, announced in September (and published in the Register in October), builds on existing state-based insurance standards while also establishing minimum capital requirements that are specific to the business of insurance. Referring to this as a framework – the “Building Block Approach” – the Fed said the BBA would require holding companies significantly engaged in insurance activities to aggregate their state-based capital requirements into a consolidated requirement. The proposal would establish both minimum requirements and a buffer on top of the minimum.
Tuesday’s Federal Register notice extends the public comment period by 30 days (from Dec. 23 to Jan. 22).