The Treasury is proposing to change the way financial institutions are assessed to cover the expenses of the OFR. Under the proposal, the asset threshold for which financial institutions are to be assessed would be increased to $250 billion; in addition, all bank holding companies that are G-SIBs would be assessed.
In order to comply with an amendment to the Dodd-Frank Act, the Treasury Department is proposing to revise how the expenses of the Office of Financial Research will be recovered and which financial institutions will be assessed for payments. The change is required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. Comments on the proposal must be submitted by Dec. 4, 2019.
The OFR was created by the Dodd-Frank Act to collect data, carry out research, and develop risk-monitoring tools for the Financial Stability Oversight Council. The Dodd-Frank Act provided that the OFR’s expenses were to be paid through assessments on bank holding companies with $50 billion or more in assets and on nonbank financial companies that had been designated for Federal Reserve Board supervision.
EGRRCPA amended that requirement to raise the asset threshold to $250 billion. It also provided that all global systemically important banks are to be assessed regardless of their size.
The proposal also includes consistent dates for determining a BHC’s assets and for billing and collecting assessments.
MainStory: TopStory BankHolding DoddFrankAct FinancialStability
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