Home About Latest Browse RSS Advanced Search

Board of Governors of the Federal Reserve System (U.S.)
FEDS Notes
Effects of Fixed Nominal Thresholds for Enhanced Supervision
David Hou
Missaka Warusawitharana
Abstract

Following the financial crisis, the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and the implementation of Basel III significantly changed the regulatory landscape in the U.S. This note discusses how the use of such fixed nominal thresholds impacts the extent of enhanced prudential supervision. Section 1 presents the various thresholds that are in place as of May 15, 2018. Section 2 analyzes the effect of these thresholds on the number and total assets of the affected banks, and examines whether the thresholds have caused any bunching of banks. Section 3 discusses possible changes that may help address some of these effects.


Download Full text
Cite this item
David Hou & Missaka Warusawitharana, Effects of Fixed Nominal Thresholds for Enhanced Supervision, Board of Governors of the Federal Reserve System (U.S.), FEDS Notes 2018-07-19, 19 Jul 2018.
More from this series
JEL Classification:
Subject headings:
DOI: 10.17016/2380-7172.2183
For corrections, contact FRB Librarian ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal