FED announces that the aggregate financial sector liabilities equal USD 20,283,121,945,000 and the related measure is in effect from July 01, 2018 through June 30, 2019. FED will publish the aggregate financial sector liabilities by July 01 of each year, pursuant to Regulation XX. Aggregate of 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.
Section 622 of the Dodd-Frank Act, implemented by the Regulation XX of FED, prohibits a merger or acquisition that would result in a financial company that controls more than 10% of the aggregate consolidated liabilities of all financial companies. Specifically, an insured depository institution, a bank holding company, a savings and loan holding company, a foreign banking organization, any other company that controls an insured depository institution, and a nonbank financial company designated by FSOC is prohibited from merging or consolidating with, acquiring all or substantially all of the assets of, or acquiring control of, another company if the resulting company's consolidated liabilities would exceed 10% of the aggregate financial sector liabilities.
FED used information collected on the Consolidated Financial Statements for Holding Companies (FR Y-9C) and the Bank Consolidated Reports of Condition and Income 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 liabilities of a foreign financial companies.
Related Link: FED Announcement in Federal Register
Keywords: Americas, US, Banking, Aggregate Financial Sector Liabilities, Regulation XX, Dodd Frank Act, FED
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