(a) Initial application.
(1) A Board-regulated
institution that initially becomes subject to the minimum net stable
funding requirement under section 249.1(b)(1)(i) or (ii) after July
1, 2021, must comply with the requirements of subparts K through N
of this part beginning on the first day of the third calendar quarter
after which the Board-regulated institution becomes subject to this
part.
(2) A Board-regulated institution
that becomes subject to the minimum net stable funding requirement
under section 249.1(b)(1)(iii) must comply with the requirements of
subparts K through N of this part subject to a transition period specified
by the Board.
(b) Transition
to a different required stable funding adjustment percentage.
(1) A Board-regulated
institution whose required stable funding adjustment percentage changes
is subject to the transition periods as set forth in section 249.105(c).
(2) A Board-regulated institution
that is no longer subject to the minimum stable funding requirement
of this part pursuant to section 249.1(b)(1)(i) or (ii) based on the
size of total consolidated assets, cross-jurisdictional activity,
total nonbank assets, weighted short-term wholesale funding, or off-balance
sheet exposure calculated in accordance with the Call Report, or instructions
to the FR Y-9LP, the FR Y-15, or equivalent reporting form, as applicable,
for each of the four most recent calendar quarters may cease compliance
with the requirements of subparts K through N of this part as of the
first day of the first calendar quarter after it is no longer subject
to section 249.1(b).
(c) Reservation of authority. The Board may extend or accelerate
any compliance date of this part if the Board determines such extension
or acceleration is appropriate. In determining whether an extension
or acceleration is appropriate, the Board will consider the effect
of the modification on financial stability, the period of time for
which the modification would be necessary to facilitate compliance
with the requirements of subparts K through N of this part, and the
actions the Board-regulated institution is taking to come into compliance
with the requirements of subparts K through N of this part.
