The Board of Governors of the Federal Reserve System ("FRB") interim final rule to raise the consolidated asset threshold for bank holding companies seeking relief under the small bank holding company policy statement (the "policy statement") was published in the Federal Register. The interim final rule would raise the consolidated asset threshold from $1 billion to $3 billion. Comments on the interim final rule must be received by October 29, 2018.
As previously covered, the policy statement facilitates the transfer of ownership of community banks by allowing their holding companies to operate with higher levels of debt. The FRB released the interim rule to comply with the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, which directed the FRB to raise the consolidated asset threshold. In addition, the FRB will amend Regulation Q and Regulation Y to reflect the new threshold.
The interim final rule became effective on August 30, 2018.
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