January 30, 2020
Statement by Governor Lael Brainard
Establishing a comprehensive, public framework for control should facilitate the consistent application of control standards under the Bank Holding Company Act and the Home Owners' Loan Act, and better enable the public to evaluate issues of control when they arise. The final rule substantially increases the transparency and clarity of the Board's control framework, and I support it.
Although not directly affected by the final rule, it will be important to monitor the ownership structures of banking organizations in light of this control framework and industry trends, so that the Board can identify and address any financial stability, competition, and other issues that arise in the future. It will also be important to monitor how the control framework interacts with other regulations that involve ownership thresholds in order to ensure the different elements of the Board's regulatory framework in totality are functioning as intended and to identify and address any inconsistencies, as appropriate.