As the banking sector of the United States suffers from unpaid loans and their premiums we are now seeing a major change in the norms of the bank holding companies as the Federal reserve has penned down new rules citing the concerns of the banking sector and to help stop the slowdown in various sectors related to banking.
The Federal Reserve Board ("FRB") has finally finalized new rules that will change the way the application of prudential standards to U.S. bank holding companies is handled and apply enhanced standards to certain large savings and loan holding companies. The new framework will be working in favor of the banks as well as companies to a certain extent that we have acknowledged and understood. The banks will be categorized as per their assets and risk-based levels of compliance. These will be 4 for the banks having 100 billion USD or more amounting in the total asset valuation. The FRB has provided with a chart to better understand the new rules and this generally states that the more the risk the more compliance requirements will be demanded from the banks so as the failure to comply will result in various outcome none of which is favorable of any business that you could possibly imagine running.
So the banking in the United States has changed for the companies and they need to assess their situations and brace for impact from the new framework that could prove fatal to some of the firms involved.
Tags : banking sector, Federal Reserve Board , framework , loan ,