Regulation YY Requests
Regulation YY Foreign Banking Organization Requests
The Board's Regulation YY implements enhanced prudential standards for certain companies supervised by the Board, including foreign banking organizations. Among other requirements, the Board's Regulation YY requires a foreign banking organization with $50 billion or more in total U.S. non-branch assets as of June 30, 2015, to establish a U.S. intermediate holding company and transfer its ownership interest in the substantial majority of its U.S. subsidiaries to the U.S. intermediate holding company by July 1, 2016. The Board may permit variances from the requirements under Regulation YY and, in particular, may permit a foreign banking organization to hold its ownership interest in a U.S. subsidiary outside of its U.S. intermediate holding company or to use an alternative organizational structure. The Board has acted on requests from the following foreign banking organizations regarding certain of the requirements under Regulation YY:
November 15, 2022: China Merchants Group Limited (PDF)
Approval of the request by China Merchants Group Limited, Hong Kong Special Administrative Region, People’s Republic of China, to comply with the Board’s single-counterparty credit limit rule and related reporting requirements through its foreign bank subsidiaries.
November 15, 2022: CITIC Group Corporation (PDF)
Approval of the request by CITIC Group Corporation, Beijing, People’s Republic of China, to comply with the Board’s single-counterparty credit limit rule and related reporting requirements through its foreign bank subsidiaries.
May 11, 2020: China Merchants Group Limited (PDF)
Approval of the request by China Merchants Group Limited, Hong Kong Special Administrative Region, People’s Republic of China, to comply with the capital stress testing requirements and related reporting requirements for foreign banking organizations, under section 252.146 of Regulation YY, through its foreign bank subsidiaries.
May 11, 2020: CITIC Group Corporation (PDF)
Approval of the request by CITIC Group Corporation, Beijing, People’s Republic of China, to comply with the capital stress testing requirements and related reporting requirements for foreign banking organizations, under section 252.146 of Regulation YY, through its foreign bank subsidiaries.
February 14, 2018: Deutsche Bank AG (PDF)
Approval of request to establish a second intermediate holding company to hold its U.S. asset management business
January 26, 2018: The Bank of Nova Scotia (PDF)
General Counsel opinion letter to Hector Becil, advising that the U.S. risk committee established by The Bank of Nova Scotia is consistent with the U.S. risk committee requirements under section 252.155 of Regulation YY.
December 8, 2017: Deutsche Bank AG (PDF)
Approval of request to exclude the ownership interest in certain U.S. subsidiaries of Deutsche Bank AG from the U.S. intermediate holding company.
October 19, 2016: Cooperatieve Rabobank U.A. (PDF)
General Counsel opinion letter to Ruurd Weulen Kranenberg, advising that the U.S. risk committee established by Cooperatieve Rabobank U.A., Utrecht, Netherlands, is consistent with the U.S. risk committee requirements under section 252.155 of Regulation YY.
October 19, 2016: Sumitomo Mitsui Financial Group, Inc. (PDF)
General Counsel opinion letter to Nobuyuki Kawabata, advising that the U.S. risk committee established by Sumitomo Mitsui Financial Group, Inc., Tokyo, Japan, is consistent with the U.S. risk committee requirements under section 252.155 of Regulation YY.
July 6, 2016: Societe Generale (PDF)
Approval of request for relief from the requirement to establish a U.S. intermediate holding company and comply with applicable requirements under Regulation YY by July 1, 2016.
July 6, 2016: Banco Bilbao Vizcaya Argentaria, S.A. (PDF)
Approval of request for a six-month extension of time, until January 1, 2017, to transfer five U.S. subsidiaries to its U.S. intermediate holding company.
February 18, 2016; Banco Santander S.A. (PDF)
Approval of request to exclude its ownership interest in certain U.S. subsidiaries from its U.S. intermediate holding company and denial of request to exclude its ownership interest in a U.S. subsidiary from its U.S. intermediate holding company.
February 18, 2016; Bank of Montreal (PDF)
Denial of request to exclude its ownership interest in a U.S. subsidiary from its U.S. intermediate holding company and approval of extension of time to transfer its ownership interest in the U.S. subsidiary to its U.S. intermediate holding company.
February 18, 2016; BNP Paribas (PDF)
Approval of request to exclude its ownership interest in certain U.S. subsidiaries from its U.S. intermediate holding company.
February 18, 2016; Credit Suisse AG (PDF)
Approval of request to exclude its ownership interest in certain U.S. subsidiaries from its U.S. intermediate holding company and denial of request to exclude its ownership interest in certain U.S. subsidiaries from its U.S. intermediate holding company.
February 18, 2016; Deutsche Bank AG (PDF)
Approval of request to exclude its ownership interest in certain U.S. subsidiaries from its U.S. intermediate holding company.
February 18, 2016; Royal Bank of Canada (PDF)
Denial of request to exclude its ownership interest in a U.S. subsidiary from its U.S. intermediate holding company.
February 18, 2016; Mizuho Financial Group Inc. (PDF)
Approval of request for a variance from certain U.S. risk committee requirements.
February 18, 2016; The Norinchukin Bank (PDF)
Approval of request for a variance from certain U.S. risk committee requirements.
December 11, 2014; The Royal Bank of Scotland plc (PDF)
Approval of request to extend asset measurement date for the initial applicability of the U.S. intermediate holding company requirement.
December 11, 2014; The Toronto-Dominion Bank (PDF)
Denial of request to exclude its ownership interest in a U.S. subsidiary from its U.S. intermediate holding company.
HLA Determination Requests
The Board’s Regulation YY requires large banking organizations1 to maintain buffers consisting of highly liquid assets so that they are resilient to market and other liquidity stresses and are able to meet their financial obligations. Highly liquid assets include cash, high-quality liquid assets as defined in the Board’s Regulation WW, and any other asset that meets certain specified criteria to the satisfaction of the Board.
A firm only may include an asset from this last category of “other assets” in a required liquidity buffer if the Board has approved a specific request for the firm to do so. Approval of a firm’s request does not affect whether the particular asset qualifies as a high-quality liquid asset under the Board’s Regulation WW, is firm-specific. Firms seeking a determination that other assets meet the criteria to be highly liquid assets should send their requests to the relevant supervisory contacts.
The Board has acted on the following firm-specific requests regarding highly liquid assets under Regulation YY:
December 16, 2021; Sumitomo Mitsui Banking Corporation (PDF)
Approval of request to determine that Canada Mortgage Bonds (CMBs) meet the criteria to be highly liquid assets.
1. In this case, bank holding companies with total consolidated assets of $100 billion or more and foreign banking organizations with combined U.S. assets of $100 billion or more. Return to text