bill has been presented to President Obama for signature that will make more small bank holding companies eligible for regulatory relief.  The bill directs the Federal Reserve to increase the qualifying asset threshold of the Federal Reserve’s Small Bank Holding Company Policy Statement from $500 million to up to $1 billion.

The relief will only be available for small bank holding companies that:

  • are not engaged in significant nonbanking activities either directly or through a nonbank subsidiary;
  • do not conduct significant off-balance sheet activities (including securitization and asset management or administration) either directly or through a nonbank subsidiary; and
  • do not have a material amount of debt or equity securities outstanding (other than trust preferred securities) that are registered with the Securities and Exchange Commission.