Effects of fixed nominal thresholds for enhanced supervision Accessible Data

Figure 1

  Quantitative Thresholds Classifications
Classifications (1) TCA $10B TCA $50B TCA $250B TCA $700B NBA $75B On-BS FE $10B AUC $10T Other Discretionary AA GSIBs LISCC LC
Advanced Approaches                      
G-SIB (2)                    
LISCC (3)                        
Large and Complex                    
Capital Plan Rule                        
Comprehensive Capital Analysis and Review (CCAR)                      
Annual Company-run Stress Tests (>$10B and <$50B)                      
Semi-annual Company-run Stress Tests (>=$50B)                        
Annual Supervisory Stress Tests (DFAST)                        
Market Shock Component (4)                    
Large Counterparty Default Component (5)                        
Capital Conservation Buffer (CCB) (6)                          
Countercyclical Capital Buffer (CCyB)                        
Supplementary Leverage Ratio (SLR)                        
Enhanced Supplementary Leverage Ratio (Leverage Buffer)                    
Market Risk Rule (7)                      
AOCI Included in Regulatory Capital                        
Liquidity Coverage Ratio (LCR), Full and Modified                  
Net Stable Funding Ratio (NSFR), Full and Modified (8)                  
Total Loss Absorbing Capacity (TLAC) and Long-Term Debt (LTD)                        
Recovery Plans                        
Resolution Plans                        
Limit on debit card interchange fees                        
Cybersecurity (9)                        
Total number of classifications/regulations 2 9 4 2 1 3 2 3 6 3 3 1 2

Note: Above rules do not reflect the totality of financial regulations applicable to financial institutions supervised by the Federal Reserve Board. Instead, these regulations represent a sample of those passed or modified in the post-crisis period that are material from a compliance standpoint. TCA refers to total consolidated assets. NBA refers to nonbank assets. On-BS FE refers to on-balance sheet foreign exposures. AUC refers to assets under custody. AA refers to firms subject to the advanced approaches RWA framework. LISCC refers to the Large Institution Supervision Coordinating Committee. LC refers to Large and Complex firms per SR 15-18.

(1) Foreign banking organizations with total consolidated assets and U.S. non-branch assets of at least $50B are subject to the intermediate holding company requirement. Some classifications include IHCs. Some regulations likewise apply to IHCs.

(2) G-SIB designation by the Basel Committee on Banking Supervision is based on a set of twelve systemic indicators. The U.S. separately calculates its own Method 2 score by substituting reliance on short-term wholesale funding for substitutability.

(3) Firms in the LISCC portfolio are "financial institutions that may pose elevated risks to U.S. financial stability and are supervised by the Federal Reserve."

(4) The market shock by law applies to "large banking organizations with significant trading activities." These firms are currently defined as those subject to the supervisory stress tests that are not large and noncomplex and hold trading assets and liabilities in excess of $50B or 10% of total consolidated assets.

(5) The large counterparty default component applies to companies with substantial trading or processing and custodian operations, which currently consist of the eight domestic G-SIBs.

(6) The Capital Conservation Buffer applies to all Board-regulated institutions. Proposed rulemaking replaces the Capital Conservation Buffer with a Stress Capital Buffer. See Board of Governors of the Federal Reserve System (2018).

(7) The market risk rule applies to institutions with aggregate trading assets and trading liabilities equal to or in excess of 10% of total assets, or $1B. The Board also retains the authority to apply this requirement to any Board-regulated institution if deemed necessary or appropriate.

(8) Notice of proposed rulemaking, not finalized.

(9) Advance notice of proposed rulemaking, not finalized.

Figure 2: Number of Y-9C Filers between Thresholds

  [$10B, $50B) [$50B, $250B) [$250B+]
2009 Q4 41 24 12
2013 Q4 47 22 11
2017 Q4 69 24 12

Note: Graph shows the number of Y-9C filers with total assets (BHCK2170) between nominal thresholds.

Source: FR Y-9C.

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Figure 3: Assets of Y-9C Filers as Percent of Nominal GDP

  [$10B, $50B) [$50B, $250B) [$250B+]
2009 Q4 5 18 77
2013 Q4 6 15 67
2017 Q4 8 17 64

Note: Graph shows the total assets (BHCK2170) of Y-9C filers with assets between nominal thresholds, expressed as a percent of nominal GDP.

Source: FR Y-9C, FRED.

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Last Update: July 19, 2018