A category of companies introduced under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (www.practicallaw.com/4-502-8619) subject to enhanced regulation by the Federal Reserve Board (www.practicallaw.com/7-386-5656) due to the risk they may pose to the US financial system if they fall into economic distress. SSFIs include any:
Bank holding company (www.practicallaw.com/4-384-4321) (BHC) with at least $50 billion in consolidated assets. This includes foreign companies that are BHCs because they own a US bank or are deemed to be BHCs because they operate a US branch or agency or commercial lending subsidiary.
US or foreign non-bank financial company predominantly engaged in financial activities that the Financial Stability Oversight Council (www.practicallaw.com/2-502-8309) (FSOC) has determined could pose a threat to the financial stability of the US because of its size, scale, concentration, interconnectedness or mix of activities or as a result of a material financial distress at the company. A non-bank financial company as to which the FSOC has made this determination is subject to the supervision of the Federal Reserve Board (www.practicallaw.com/7-386-5656) and the enhanced prudential standards that it must set for, among other things, capital and leverage.
For more information on SSFIs, the standards to which they are subject and the Dodd-Frank Act generally, see Articles, Summary of the Dodd-Frank Act: Regulation of Systemically Significant Financial Institutions (www.practicallaw.com/1-502-8437) and Road Map to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (www.practicallaw.com/3-502-8479)