District Circular Letters
November 24, 1997
BANKING SUPERVISION AND REGULATION:
RISK-FOCUSED SUPERVISION OF SMALL SHELL BANK HOLDING COMPANIES
REGULATION Y: CORRECTION TO REVISION OF REGULATION
To All Bank Holding Companies,
State Member Banks, and Others Concerned
in the Twelfth Federal Reserve District
Revised Policy for Risk-Focused Supervision of Small Shell Bank Holding
Companies (SSBHCs)
The Federal Reserve Board has announced a revised policy for risk-focused
supervision of SSBHCs, defined as banking organizations with less than
$1 billion in consolidated assets that do not have debt outstanding to
the public, and which do not engage in significant nonbank activities.
Implementation of the new program is to commence no later than November
30, 1997.
The new supervisory program supersedes the previous inspection frequency
and scope guidelines applicable to SSBHCs and permits a more flexible
approach to supervising those entities in a risk-focused environment.
A copy of the Board's new policy is attached.
Correction to Comprehensive Revision of Regulation Y (Dockets R-0935
and R-0936)
The Board is correcting an error in the text of the comprehensive amendments
to Regulation Y (Bank Holding Companies and Change in Bank Control) that
appeared in the Federal Register on February 28, 1997. The correction restores
the time limit required for Board action in processing non-expedited notices
under section 4 of the Bank Holding Company Act that was inadvertently deleted
from the text of the final rule.
This correction is effective immediately.
Copies
Copies of the Board's notice (Docket R-0935
and R-0936) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748. To
request copies of the correction to the revision to be sent via fax, please
call (415) 974-3333, and specify document number 4176. The original revision
to Regulation Y is unavailable via fax due to the length of the document.
Additional Information
For additional information regarding these matters, please contact our
Banking Supervision and Regulation Department, at (415) 974-2932
[for the Board policy regarding small shell bank holding companies], and
(415) 974-3007 [for Regulation Y].
FEDERAL RESERVE BANK OF SAN FRANCISCO
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