Board of Governors of the Federal Reserve System

The Large and Foreign Banking Organizations (LFBO) program supervises U.S. firms with assets of $100 billion or more that are not included in the GSIB program (Large Banking Organizations, or LBO) and foreign banking organizations (FBO) with combined U.S. assets of $100 billion or more.

The Federal Reserve tailors its expectations for LFBOs to account for their size, complexity, risk profile, foreign exposure, and financial activities. In the supervision and regulation of FBOs, the Federal Reserve gives due regard to the principle of national treatment and equality of competitive opportunity. In consolidated supervision of LFBOs, the Federal Reserve focuses on enhancing the resiliency of each LFBO and on reducing the impact of its failure on the financial system and the broader economy. Each LFBO is expected to ensure that the consolidated organization and its core business lines can survive under a broad range of internal or external stresses.

The LFBO program includes coordinated reviews, firm-specific examinations, and continuous monitoring. This supervisory work over LFBOs is focused on assessing capital, liquidity, and governance and control practices, which aligns with the components of the Large Financial Institution (LFI) rating system.

For FBOs, the Board conducts a holistic assessment of the U.S. operations, and takes into account ratings assigned to the U.S. intermediate holding company, any branches and agencies, and other legal entities. Unlike LBOs, branches and agencies of FBOs are rated using the ROCA rating system, which has four components: risk management, operational controls, compliance and asset quality.

For more information, see: Supervision and Regulation (SR) letters related to supervision of large banks

Also, see: Resources for Supervised Institutions