FRB Capital Rule For Insurance Depository Holding Companies Coming Soon – Finance and Banking – United States – Mondaq News Alerts

United States: FRB Capital Rule For Insurance Depository Holding Companies Coming Soon

31 May 2021

Cadwalader, Wickersham & Taft LLP

To print this article, all you need is to be registered or login on Mondaq.com.

In a speech at the National Association of Insurance
Commissioners International Insurance Forum, Federal Reserve Board
(“FRB”) Vice Chair of Supervision Randal Quarles reported that the FRB will publish soon a
capital rule for insurance depository institution holding
companies. As previously discussed, the proposed rule utilizes a framework known
as the “Building Block Approach” (or “BBA”),
and “adjusts and aggregates existing legal-entity capital
requirements to produce an enterprise-wide capital
requirement” for entities with both banking and insurance
operations. He explained that “the BBA uses the existing and
time-tested frameworks that have been tailored specifically to
measure appropriately particular risks. It assesses insurance risks
using an insurance capital framework and banking risks using our
banking capital framework.”

Primary Sources

1. FRB Speech, Randal Quarles: Remarks at the
   National Association of Insurance Commissioners International
   Insurance Forum

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from United States

LIBOR End Dates Confirmed

Mayer Brown

The administrator for LIBOR and other inter-bank offered rates, ICE Benchmark Administration (“IBA”), confirmed on March 5, 2021 its previously announced dates for LIBOR cessation.

from WordPress https://ift.tt/3vFo2UK
via IFTTT