Fed raises asset size triggering assessment fees to holding companies, revises methodology

The threshold at which annual assessment fees will be applied to bank holding companies (BHCs) and savings and loan holding companies (SLHCs) will rise from $50 billion to $100 billion in total consolidated assets under a final rule announced Thursday by the Federal Reserve Board.

The final rule, which the Fed said is “nearly identical” to the proposal issued last year under the the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), also adjusts the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion. This change reflects changes in supervisory and regulatory responsibilities resulting from EGRRCPA, the Fed said.

The impact analysis provided in the final rule notes that based on data from the 2018 assessment period, the change in the minimum threshold of total consolidated assets from $50 billion to $100 billion decreased the number of assessed companies from 64 to 56. These companies would have been charged an aggregate amount of $10.1 million, or approximately 1.7% of the estimated assessment basis.

This analysis also points to a decrease in the assessment fees under the revised assessment methodology: As of Dec. 31, 2018, an assessed Category IV firm with $100 billion in total consolidated assets would have been charged $3.1 million. Under the final rule, an assessed Category IV firm with $100 billion in total consolidated assets would be charged $2.9 million.

The final rule is set to take effect 30 days after its publication in the Federal Register.

Federal Reserve Board issues final rule modifying the annual assessment fees for its supervision and regulation of large financial companies