On December 4, 2015, the Board of Governors of the Federal Reserve System (the “Board”) issued a final rule adopting amendments to the Board’s regulatory capital framework (“Regulation Q”) that was issued in June 2013. The final rule provides examples of how to apply the framework to depository institution holding companies that are not organized as traditional stock corporations and how instruments issued by such firms may qualify as regulatory capital. The final rule also issued a temporary exclusion from Regulation Q for savings and loan holding companies that are trusts and depository institution holding companies that are employee stock ownership plans – until the Board can propose appropriate rules for such entities. In addition, the Board extended the applicable compliance date with the revised capital framework to July 1, 2016. The final rule will take effect on January 1, 2016. Press Release. Final Rule.
regulation q
Fed Proposed Rule to Repeal Reg Q
On April 6, the Fed issued a proposed rule to repeal Regulation Q, which prohibits the payment of interest on demand deposits by Fed member banks. Section 627 of the Dodd-Frank Act eliminated the statutory authority under which the Fed established Regulation Q. Comments must be submitted within 30 days from the date of publication in the Federal Register.
Fed Release.