24296 Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Proposed Rules
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3 and 50
[Docket ID OCC–2019–0009]
RIN 1557–AE63
FEDERAL RESERVE SYSTEM
12 CFR Parts 217 and 249
[Regulations Q, WW; Docket No. R–1628B]
RIN 7100–AF21
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324 and 329
RIN 3064–AE96
Changes to Applicability Thresholds
for Regulatory Capital Requirements
for Certain U.S. Subsidiaries of Foreign
Banking Organizations and Application
of Liquidity Requirements to Foreign
Banking Organizations, Certain U.S.
Depository Institution Holding
Companies, and Certain Depository
Institution Subsidiaries
AGENCY: Office of the Comptroller of the
Currency, Treasury; the Board of
Governors of the Federal Reserve
System; and the Federal Deposit
Insurance Corporation.
ACTION: Notice of proposed rulemaking
with request for public comment.
SUMMARY: The Office of the Comptroller
of the Currency, the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (collectively, the agencies)
are inviting comment on a proposal that
would determine the application of
regulatory capital requirements to
certain U.S. intermediate holding
companies of foreign banking
organizations and their depository
institution subsidiaries and the
application of standardized liquidity
requirements with respect to certain
U.S. operations of large foreign banking
organizations and certain of their
depository institution subsidiaries, each
according to risk-based categories. For
liquidity, the proposal would require a
foreign banking organization that meets
certain criteria to comply with liquidity
coverage ratio and net stable funding
ratio requirements with respect to any
U.S. intermediate holding company and
certain depository institution
subsidiaries thereof; in addition, the
Board is not proposing but is requesting
comment on whether it should impose
standardized liquidity requirements on
such foreign banking organizations with
respect to their U.S. branch and agency
networks, as well as possible
approaches for doing so. The proposal is
consistent with a separate proposal
issued by the Board that would apply
certain prudential standards to foreign
banking organizations based on the
same categories, and is similar to a
proposal issued by the agencies in 2018
that would determine the application of
regulatory capital and standardized
liquidity requirements for large U.S.
banking organizations according to risk-
based categories (the domestic
interagency proposal). In addition, the
Board is modifying one aspect of the
proposed requirements under the
domestic interagency proposal with
respect to certain banking organizations;
specifically, to propose the application
of a standardized liquidity requirement
to certain U.S. depository institution
holding companies that meet specified
criteria relating to their liquidity risk
profile. The agencies are also making
technical amendments to certain
provisions of the domestic interagency
proposal.
DATES: Comments on the proposal,
including the Board’s proposal to apply
liquidity requirements to certain
domestic holding companies discussed
in section VI of the SUPPLEMENTARY
INFORMATION, must be received by June
21, 2019.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Proposed changes
to applicability thresholds for regulatory
capital requirements for certain U.S.
subsidiaries of foreign banking
organizations and application of
liquidity requirements for foreign
banking organizations’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2019–0009’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency, 400
7th Street SW, Suite 3E–218,
Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2019–0009’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish them on the Regulations.gov
website without change, including any
business or personal information that
you provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2019–0009’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen and then ‘‘Comments.’’
Comments and supporting materials can
be filtered by clicking on ‘‘View all
documents and comments in this
docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are hearing impaired,
TTY, (202) 649–5597. Upon arrival,
visitors will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect comments.
Board: You may submit comments,
identified by Docket No. R–1628, by any
of the following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm.
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khammond on DSKBBV9HB2PROD with PROPOSALS3
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3 and 50
[Docket ID OCC–2019–0009]
RIN 1557–AE63
FEDERAL RESERVE SYSTEM
12 CFR Parts 217 and 249
[Regulations Q, WW; Docket No. R–1628B]
RIN 7100–AF21
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324 and 329
RIN 3064–AE96
Changes to Applicability Thresholds
for Regulatory Capital Requirements
for Certain U.S. Subsidiaries of Foreign
Banking Organizations and Application
of Liquidity Requirements to Foreign
Banking Organizations, Certain U.S.
Depository Institution Holding
Companies, and Certain Depository
Institution Subsidiaries
AGENCY: Office of the Comptroller of the
Currency, Treasury; the Board of
Governors of the Federal Reserve
System; and the Federal Deposit
Insurance Corporation.
ACTION: Notice of proposed rulemaking
with request for public comment.
SUMMARY: The Office of the Comptroller
of the Currency, the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (collectively, the agencies)
are inviting comment on a proposal that
would determine the application of
regulatory capital requirements to
certain U.S. intermediate holding
companies of foreign banking
organizations and their depository
institution subsidiaries and the
application of standardized liquidity
requirements with respect to certain
U.S. operations of large foreign banking
organizations and certain of their
depository institution subsidiaries, each
according to risk-based categories. For
liquidity, the proposal would require a
foreign banking organization that meets
certain criteria to comply with liquidity
coverage ratio and net stable funding
ratio requirements with respect to any
U.S. intermediate holding company and
certain depository institution
subsidiaries thereof; in addition, the
Board is not proposing but is requesting
comment on whether it should impose
standardized liquidity requirements on
such foreign banking organizations with
respect to their U.S. branch and agency
networks, as well as possible
approaches for doing so. The proposal is
consistent with a separate proposal
issued by the Board that would apply
certain prudential standards to foreign
banking organizations based on the
same categories, and is similar to a
proposal issued by the agencies in 2018
that would determine the application of
regulatory capital and standardized
liquidity requirements for large U.S.
banking organizations according to risk-
based categories (the domestic
interagency proposal). In addition, the
Board is modifying one aspect of the
proposed requirements under the
domestic interagency proposal with
respect to certain banking organizations;
specifically, to propose the application
of a standardized liquidity requirement
to certain U.S. depository institution
holding companies that meet specified
criteria relating to their liquidity risk
profile. The agencies are also making
technical amendments to certain
provisions of the domestic interagency
proposal.
DATES: Comments on the proposal,
including the Board’s proposal to apply
liquidity requirements to certain
domestic holding companies discussed
in section VI of the SUPPLEMENTARY
INFORMATION, must be received by June
21, 2019.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Proposed changes
to applicability thresholds for regulatory
capital requirements for certain U.S.
subsidiaries of foreign banking
organizations and application of
liquidity requirements for foreign
banking organizations’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2019–0009’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency, 400
7th Street SW, Suite 3E–218,
Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2019–0009’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish them on the Regulations.gov
website without change, including any
business or personal information that
you provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2019–0009’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen and then ‘‘Comments.’’
Comments and supporting materials can
be filtered by clicking on ‘‘View all
documents and comments in this
docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are hearing impaired,
TTY, (202) 649–5597. Upon arrival,
visitors will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect comments.
Board: You may submit comments,
identified by Docket No. R–1628, by any
of the following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm.
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khammond on DSKBBV9HB2PROD with PROPOSALS3
24297Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Proposed Rules
1 Foreign banking organization means a foreign
bank that operates a branch, agency, or commercial
lending company subsidiary in the United States;
controls a bank in the United States; or controls an
Edge corporation acquired after March 5, 1987; and
any company of which the foreign bank is a
subsidiary. See 12 CFR 211.21(o); 12 CFR 252.2(k).
• Email: regs.comments@
federalreserve.gov. Include docket
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551. All public comments will be
made available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
Public comments may also be viewed
electronically or in paper form in Room
146, 1709 New York Avenue,
Washington, DC 20006 between 9:00
a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments,
identified by RIN 3064–AE96, by any of
the following methods:
• Agency Website: http://
www.FDIC.gov/regulations/laws/
federal/propose.html. Follow
instructions for submitting comments
on the FDIC website.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivered/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
• Email: comments@FDIC.gov.
Include RIN 3064–AE96 on the subject
line of the message.
• Public Inspection: All comments
received must include the agency name
and RIN 3064–AE96 for this rulemaking.
All comments received will be posted
without change to http://www.fdic.gov/
regulations/laws/federal/, including any
personal information provided. Paper
copies of public comments may be
ordered from the FDIC Public
Information Center, 3501 North Fairfax
Drive, Room E–1002, Arlington, VA
22226, or by telephone at (877) 275–
3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
OCC: Mark Ginsberg, Senior Risk
Expert, or Venus Fan, Risk Expert,
Capital and Regulatory Policy, (202)
649–6370; James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; or Carl Kaminski,
Special Counsel, Henry Barkhausen,
Counsel, or Daniel Perez, Attorney,
Chief Counsel’s Office, (202) 649–5490,
or for persons who are hearing
impaired, TTY, (202) 649–5597, Office
of the Comptroller of the Currency, 400
7th Street SW, Washington, DC 20219.
Board: Constance M. Horsley, Deputy
Associate Director, (202) 452–5239;
Elizabeth MacDonald, Manager, (202)
475–6216; Brian Chernoff, Lead
Financial Institution Policy Analyst,
(202) 452–2952; J. Kevin Littler, Lead
Financial Institution Policy Analyst,
(202) 475–6677; Mark Handzlik, Lead
Financial Institution Policy Analyst,
(202) 475–6636; Matthew McQueeney,
Senior Financial Institution Policy
Analyst, (202) 452–2942; Christopher
Powell, Senior Financial Institution
Policy Analyst, (202) 452–3442,
Division of Supervision and Regulation;
or Benjamin McDonough, Assistant
General Counsel, (202) 452–2036; Asad
Kudiya, Counsel, (202) 475–6358; Jason
Shafer, Counsel (202) 728–5811; Mary
Watkins, Senior Attorney, (202) 452–
3722; Joshua Strazanac, Attorney, (202)
452–2457; Alyssa O’Connor, Attorney,
(202) 452–3886, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For the hearing
impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263–
4869.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, bbosco@fdic.gov;
Michael Maloney, Senior Policy
Analyst, mmaloney@fdic.gov;
regulatorycapital@fdic.gov; Michael E.
Spencer, Chief, Capital Markets
Strategies Section, michspencer@
fdic.gov; Eric W. Schatten, Senior Policy
Analyst, eschatten@fdic.gov; Andrew D.
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov; Capital Markets
Branch, Division of Risk Management
Supervision, (202) 898–6888; Michael
Phillips, Counsel, mphillips@fdic.gov;
Catherine Wood, Acting Supervisory
Counsel, cawood@fdic.gov; Suzanne
Dawley, Counsel, sudawley@fdic.gov;
Andrew B. Williams II, Counsel,
andwilliams@fdic.gov; or Gregory Feder,
Counsel, gfeder@fdic.gov; Supervision
and Legislation Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429. For the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
A. Current Prudential Regulatory Regime
B. Tailoring in the Current Prudential
Regulatory Regime
C. Structure and Activities of Foreign
Banking Organizations
III. Overview of the Proposal
A. Categories of Standards
B. Scoping Criteria
C. Determination of Applicable Category of
Standards
IV. Capital Requirements
A. Category II Standards
B. Category III Standards
C. Category IV Standards
V. Liquidity Requirements
A. Categories of Liquidity Requirements for
a Foreign Banking Organization
B. LCR Requirement With Respect to
Foreign Banking Organizations
C. NSFR Requirement With Respect to
Foreign Banking Organizations
D. LCR and NSFR Public Disclosure for
Foreign Banking Organizations and U.S.
Banking Organizations
E. Request for Comment on Standardized
Liquidity Requirements With Respect to
U.S. Branches and Agencies of a Foreign
Banking Organization
F. LCR and NSFR Requirements for Certain
Depository Institution Subsidiaries of a
Foreign Banking Organization
G. Transition Period; Cessation of
Applicability
VI. Re-Proposal of Standardized Liquidity
Requirements for Certain U.S. Depository
Institution Holding Companies Subject
to Category IV Standards
VII. Technical Amendments
VIII. Impact Assessment
IX. Administrative Law Matters
A. Solicitation of Comments and Use of
Plain Language
B. Paperwork Reduction Act Analysis
C. Regulatory Flexibility Act Analysis
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. OCC Unfunded Mandates Reform Act of
1995 Determination
I. Introduction
The Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the
agencies) are inviting comment on a
proposed rule (the proposal) that would
apply regulatory capital and
standardized liquidity requirements
with respect to the U.S. operations of
foreign banking organizations according
to risk-based categories.1 U.S. law
permits foreign banking organizations to
operate in the United States through a
variety of structures. For example, a
foreign banking organization might
conduct U.S. banking activities through
VerDate Sep<11>2014 18:46 May 23, 2019 Jkt 247001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 E:\FR\FM\24MYP3.SGM 24MYP3
khammond on DSKBBV9HB2PROD with PROPOSALS3
1 Foreign banking organization means a foreign
bank that operates a branch, agency, or commercial
lending company subsidiary in the United States;
controls a bank in the United States; or controls an
Edge corporation acquired after March 5, 1987; and
any company of which the foreign bank is a
subsidiary. See 12 CFR 211.21(o); 12 CFR 252.2(k).
• Email: regs.comments@
federalreserve.gov. Include docket
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551. All public comments will be
made available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
Public comments may also be viewed
electronically or in paper form in Room
146, 1709 New York Avenue,
Washington, DC 20006 between 9:00
a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments,
identified by RIN 3064–AE96, by any of
the following methods:
• Agency Website: http://
www.FDIC.gov/regulations/laws/
federal/propose.html. Follow
instructions for submitting comments
on the FDIC website.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivered/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
• Email: comments@FDIC.gov.
Include RIN 3064–AE96 on the subject
line of the message.
• Public Inspection: All comments
received must include the agency name
and RIN 3064–AE96 for this rulemaking.
All comments received will be posted
without change to http://www.fdic.gov/
regulations/laws/federal/, including any
personal information provided. Paper
copies of public comments may be
ordered from the FDIC Public
Information Center, 3501 North Fairfax
Drive, Room E–1002, Arlington, VA
22226, or by telephone at (877) 275–
3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
OCC: Mark Ginsberg, Senior Risk
Expert, or Venus Fan, Risk Expert,
Capital and Regulatory Policy, (202)
649–6370; James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; or Carl Kaminski,
Special Counsel, Henry Barkhausen,
Counsel, or Daniel Perez, Attorney,
Chief Counsel’s Office, (202) 649–5490,
or for persons who are hearing
impaired, TTY, (202) 649–5597, Office
of the Comptroller of the Currency, 400
7th Street SW, Washington, DC 20219.
Board: Constance M. Horsley, Deputy
Associate Director, (202) 452–5239;
Elizabeth MacDonald, Manager, (202)
475–6216; Brian Chernoff, Lead
Financial Institution Policy Analyst,
(202) 452–2952; J. Kevin Littler, Lead
Financial Institution Policy Analyst,
(202) 475–6677; Mark Handzlik, Lead
Financial Institution Policy Analyst,
(202) 475–6636; Matthew McQueeney,
Senior Financial Institution Policy
Analyst, (202) 452–2942; Christopher
Powell, Senior Financial Institution
Policy Analyst, (202) 452–3442,
Division of Supervision and Regulation;
or Benjamin McDonough, Assistant
General Counsel, (202) 452–2036; Asad
Kudiya, Counsel, (202) 475–6358; Jason
Shafer, Counsel (202) 728–5811; Mary
Watkins, Senior Attorney, (202) 452–
3722; Joshua Strazanac, Attorney, (202)
452–2457; Alyssa O’Connor, Attorney,
(202) 452–3886, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For the hearing
impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263–
4869.
FDIC: Benedetto Bosco, Chief, Capital
Policy Section, bbosco@fdic.gov;
Michael Maloney, Senior Policy
Analyst, mmaloney@fdic.gov;
regulatorycapital@fdic.gov; Michael E.
Spencer, Chief, Capital Markets
Strategies Section, michspencer@
fdic.gov; Eric W. Schatten, Senior Policy
Analyst, eschatten@fdic.gov; Andrew D.
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov; Capital Markets
Branch, Division of Risk Management
Supervision, (202) 898–6888; Michael
Phillips, Counsel, mphillips@fdic.gov;
Catherine Wood, Acting Supervisory
Counsel, cawood@fdic.gov; Suzanne
Dawley, Counsel, sudawley@fdic.gov;
Andrew B. Williams II, Counsel,
andwilliams@fdic.gov; or Gregory Feder,
Counsel, gfeder@fdic.gov; Supervision
and Legislation Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429. For the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
A. Current Prudential Regulatory Regime
B. Tailoring in the Current Prudential
Regulatory Regime
C. Structure and Activities of Foreign
Banking Organizations
III. Overview of the Proposal
A. Categories of Standards
B. Scoping Criteria
C. Determination of Applicable Category of
Standards
IV. Capital Requirements
A. Category II Standards
B. Category III Standards
C. Category IV Standards
V. Liquidity Requirements
A. Categories of Liquidity Requirements for
a Foreign Banking Organization
B. LCR Requirement With Respect to
Foreign Banking Organizations
C. NSFR Requirement With Respect to
Foreign Banking Organizations
D. LCR and NSFR Public Disclosure for
Foreign Banking Organizations and U.S.
Banking Organizations
E. Request for Comment on Standardized
Liquidity Requirements With Respect to
U.S. Branches and Agencies of a Foreign
Banking Organization
F. LCR and NSFR Requirements for Certain
Depository Institution Subsidiaries of a
Foreign Banking Organization
G. Transition Period; Cessation of
Applicability
VI. Re-Proposal of Standardized Liquidity
Requirements for Certain U.S. Depository
Institution Holding Companies Subject
to Category IV Standards
VII. Technical Amendments
VIII. Impact Assessment
IX. Administrative Law Matters
A. Solicitation of Comments and Use of
Plain Language
B. Paperwork Reduction Act Analysis
C. Regulatory Flexibility Act Analysis
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. OCC Unfunded Mandates Reform Act of
1995 Determination
I. Introduction
The Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
and the Federal Deposit Insurance
Corporation (FDIC) (collectively, the
agencies) are inviting comment on a
proposed rule (the proposal) that would
apply regulatory capital and
standardized liquidity requirements
with respect to the U.S. operations of
foreign banking organizations according
to risk-based categories.1 U.S. law
permits foreign banking organizations to
operate in the United States through a
variety of structures. For example, a
foreign banking organization might
conduct U.S. banking activities through
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khammond on DSKBBV9HB2PROD with PROPOSALS3