Navy FCU and Nonbank SIFIs

 

Is Navy Federal Credit Union a nonbank systemically important financial institution (SIFI)?

Dodd-Frank Act requires designated nonbank SIFIs to be supervised by the Board of Governors and subject to prudential standards.

Title I of the Dodd-Frank Act defines a “nonbank financial company” as a domestic or foreign company that is “predominantly engaged in financial activities,” other than bank holding companies and certain other types of firms.

The Financial Stability Oversight Council analyzes three factors — size, interconnectedness, and substitutability — when making the determination to designate a nonbank financial company as a SIFI and to subject the entity to Federal Reserve supervision.

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