Assessment threshold increase for holding companies kicks in Jan. 7 under final Fed rule

A final Federal Reserve Board rule raising from $50 billion to $100 billion the threshold at which annual assessment fees will be applied to bank holding companies (BHCs) and savings and loan holding companies (SLHCs) is set to take effect Jan. 7, according to a Federal Register notice published Tuesday.

The final rule, issued under the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), also adjusts the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion. This reflects changes in supervisory and regulatory responsibilities resulting from EGRRCPA, the Fed said.

The rule’s impact analysis states that based on data from the 2018 assessment period, the change in the minimum threshold of total consolidated assets from $50 billion to $100 billion decreased the number of assessed companies from 64 to 56. These companies would have been charged an aggregate amount of $10.1 million, or approximately 1.7% of the estimated assessment basis. It also points to a decrease in the assessment fees under the revised assessment methodology: As of Dec. 31, 2018, an assessed Category IV firm with $100 billion in total consolidated assets would have been charged $3.1 million; under the final rule, a similar firm would be charged $2.9 million.

Reg lookup: Supervision and Regulation Assessments of Fees for Bank Holding Companies and Savings and Loan Holding Companies With Total Consolidated Assets of $100 Billion or More