FED released annual determination of the aggregate consolidated liabilities of financial companies as required by the Dodd-Frank Act. The Act prohibits a financial company from combining with another company if the resulting company's liabilities would exceed 10% of the aggregate consolidated liabilities of all financial companies. Effective July 01, 2020, the aggregate consolidated liabilities equal USD 21,229,884,414,000. This number will be the measure of aggregate consolidated liabilities from July 01, 2020 through June 30, 2021. Financial companies subject to the limit include insured depository institutions, bank holding companies, savings and loan holding companies, foreign banking organizations, and other companies that control insured depository institutions.
The number for aggregate financial sector liabilities equals the average of the year-end financial sector liabilities figure (as of December 31) of each of the preceding two calendar years. The year-end financial sector liabilities figure equals the sum of the total consolidated liabilities of all top-tier U.S. financial companies and the U.S. liabilities of all top-tier foreign financial companies, calculated using the applicable methodology for each financial company. FED used information collected on the Consolidated Financial Statements for Holding Companies (FR Y-9C) and the Bank Consolidated Reports of Condition and Income (Call Reports) to calculate liabilities of U.S. financial companies that were subject to consolidated risk-based capital rules as of December 31 of the year being measured. FED used information collected on the FR Y-9C, the Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP), and the Financial Company Report of Consolidated Liabilities (FR XX-1) to calculate liabilities of the U.S. financial companies not subject to consolidated risk-based capital rules as of December 31 of the year being measured. Additionally, FED used information collected on the Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q), the FR Y-9C, and the FR XX-1 to calculate the liabilities of foreign financial companies.
Keywords: Americas, US, Banking, Dodd-Frank Act, Aggregate Financial Sector Liabilities, Regulation XX, Risk-Based Capital Requirements, FED
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