Large Banking Organization Supervision (non-LISCC)

Large banking organizations (LBOs) are domestic financial institutions with total consolidated assets of at least $100 billion that are not included in the Large Institution Supervision Coordinating Committee (LISCC) supervision program. The Federal Reserve tailors its expectations for LBOs to account for their size, complexity, foreign exposure, risk profile and financial activities.

With respect to regulation, LBOs are subject to prudential requirements set forth in the Board's regulations, including Regulation YY. See Key Regulations for more information. The prudential standards in Regulation YY include enhanced capital, liquidity, risk-management, and stress-testing requirements.

With respect to supervision, the Federal Reserve utilizes the consolidated supervision framework set forth in SR Letter 12-17 / CA Letter 12-14 for LBOs. This framework focuses on enhancing the resiliency of each LBO and on reducing the impact of its failure on the financial system and the broader economy. Each LBO is expected to ensure that the consolidated organization and its core business lines can survive under a broad range of internal or external stresses. This requires financial resilience by maintaining sufficient capital and liquidity, and operational resilience by maintaining effective corporate governance and risk management. The Federal Reserve expects the largest and most complex LBOs to engage in effective resolution planning that addresses the complexity and interconnectivity of their operations.

The Federal Reserve's supervisory activities for LBOs include horizontal examinations, firm-specific examinations, and continuous monitoring. This supervisory work is focused on capital, liquidity, and governance and control practices, and is tailored at least annually to reflect the risk profile of these institutions.

The Federal Reserve utilizes the large financial institution (LFI) rating system for assessing LBOs. The LFI rating system is composed of the following three components, (1) Capital Planning and Positions (2) Liquidity Risk Management and Positions and (3) Governance and Controls. See SR letter 19-3 / CA letter 19-2, "Large Financial Institution (LFI) Rating System," for more information.

Key Regulations

Regulation H Membership of State Banking Institutions in the Federal Reserve System
Regulation Q Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks
Regulation W Transactions between Member Banks and Their Affiliates
Regulation Y Bank Holding Companies and Change in Bank Control
Regulation QQ Requires large, systemically significant bank holding companies and nonbank financial companies to submit annual resolution plans
Regulation WW Liquidity Risk Measurement Standards
Regulation YY Enhanced Prudential Standards

Policy Letters

Supervisory Framework

Large Financial Institution (LFI) Rating System

Consolidated Supervision Framework for Large Financial Institutions

Capital Planning and Positions

Regulatory Capital Treatment of Certain Centrally-cleared Derivative Contracts under the Board's Capital Rule

Federal Reserve Supervisory Assessment of Capital Planning and Positions for Large and Noncomplex Firms

Federal Reserve Supervisory Assessment of Capital Planning and Positions for LISCC Firms and Large and Complex Firms

Risk Transfer Considerations When Assessing Capital Adequacy – Supplemental Guidance on Consolidated Supervision Framework for Large Financial Institutions (SR letter 12-17/CA letter 12-14)

Supervisory Guidance on Stress Testing for Banking Organizations with More Than $10 Billion in Total Consolidated Assets

Guidance on Model Risk Management

Liquidity Risk Management and Positions

Interagency Frequently Asked Questions on Implementation of the Liquidity Coverage Ratio (LCR) Rule

Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent Liquidity Risks

Supervisory Guidance on Stress Testing for Banking Organizations with More Than $10 Billion in Total Consolidated Assets

Interagency Policy Statement on Funding and Liquidity Risk Management

Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management

Governance and Controls

Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing

Consolidated Supervision Framework for Large Financial Institutions

Compliance Risk Management Programs and Oversight at Large Banking Organizations with Complex Compliance Profiles

Rating the Adequacy of Risk Management Processes and Internal Controls at State Member Banks and Bank Holding Companies

Additional Resources

Large Financial Institutions

Large Institution Supervision Coordinating Committee

Shared National Credit Program

Stress Tests and Capital Planning

Financial Stability Oversight Council (U.S. Treasury)

Supervision Report

Manual References

Bank Holding Company Supervision Manual

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Last Update: November 20, 2019