Fed Unveils Final CET1 Rules For Non-Stock BHCs

The Federal Reserve Board on Friday unveiled final rules on the Basel III requirements for Common Equity Tier 1 (CET1) capital for ownership interests issued by depository institution holding companies that are structured as partnerships or limited liability companies.

On December 12, 2014, the Fed invited comment on a proposed rule that described how the CET1 requirement would apply to holding companies organized as partnerships or LLCs.

Eligibility criteria for CET1 instruments in LLC and partnerships

In July 2013, the FED adopted Regulation Q, including CET1 requirement that strengthened the capital requirements applicable to state member banks and bank holding companies (BHCs) and implemented capital requirements for certain savings...