In December 2012, the Federal Reserve Board (FRB) published a proposed rule under the Dodd-Frank Act (DFA) to address enhanced prudential standards for foreign banking organizations (FBOs) with U.S. operations. Following a prolonged rule-making process, the FRB published a final enhanced prudential supervision rule, Regulation YY, on February 18, 2014.
Why did the DFA require the FRB to implement enhanced prudential regulations? Which FBOs are affected by the FRB’s regulation? In this booklet, we will answer these and other frequently asked questions to help head office and U.S. management of foreign banking organizations understand Regulation YY.