# Total Loss-Absorbing Capacity, Long-Term Debt, and Clean Holding Company Requirements for Systemically Important U.S. Bank Holding Companies and Intermediate Holding Companies of Systemically Important Foreign Banking Organizations
> **US Federal Reserve System** · Final rule. · Published 2017-01-24 · Effective 2017-03-27 · 82 FR 8266
## Document
- **Document number:** 2017-00431
- **Category:** final-rule
- **Agency:** US Federal Reserve System
- **Federal Register citation:** 82 FR 8266
- **CFR reference:** 12 CFR 252
- **Publication date:** 2017-01-24
- **Effective date:** 2017-03-27
- **Docket:** Docket No. R-1523
## Abstract

The Board is adopting a final rule to require a U.S. top-tier bank holding company identified under the Board's rules as a global systemically important bank holding company (covered BHC) to maintain outstanding a minimum amount of loss-absorbing instruments, including a minimum amount of unsecured long-term debt. In addition, the final rule prescribes certain additional buffers, the breach of which would result in limitations on the capital distributions and discretionary bonus payments of a covered BHC. The final rule applies similar requirements to the top-tier U.S. intermediate holding company of a global systemically important foreign banking organization with $50 billion or more in U.S. non-branch assets (covered IHC). The final rule also imposes restrictions on other liabilities that a covered BHC or covered IHC may have outstanding in order to improve their resolvability and resiliency; these restrictions are referred to in the final rule as "clean holding company requirements."

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2017/01/24/2017-00431/total-loss-absorbing-capacity-long-term-debt-and-clean-holding-company-requirements-for-systemically)
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