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In December 2012, a year after it proposed enhanced prudential standards for domestic financial institutions, the Federal Reserve Board (FRB) published a proposed rule under the Dodd-Frank Act (DFA),specifically aimed at addressing enhanced prudential standards for foreign banking organizations (FBOs)
with U.S. operations. Following a protracted rule-making process during which formal and informal comments were offered by, among others, the foreign banking community and foreign supervisors, the
FRB published a final enhanced prudential supervision rule – Regulation YY – on February 18, 2014.
The following questions are intended as a primer to help head office and U.S. management of foreign banking organizations understand Regulation YY.