On February 18, 2014, the US Federal Reserve Board adopted a final regulation implementing the “enhanced supervision” requirements in Sections 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act for foreign banks with US operations and US bank holding companies.

The final regulation applies enhanced capital, liquidity, risk management, and stress testing requirements to the US operations of large foreign banks, and to domestic bank holding companies. Notably, the final regulation retains the controversial “IHC” requirement, which will require foreign banks with US non-branch subsidiary operations and more than $50 billion in assets to place nearly all those subsidiaries under an intermediate US holding company that will, in turn, be subject to the Section 165 requirements.

While most of the Section 165 requirements apply to foreign banking organizations and domestic bank holding companies with total global consolidated assets of $50 billion or more, some of the requirements will apply at lower thresholds and, in some instances, additional standards will be required of foreign banks that have only branch or agency operations in the United States.

Please join us as we discuss the key aspects of this latest 400-page final rule.

For additional information, please contact GFMI@mayerbrown.com.

Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.