BIS Review 49/1997  -5-  In the past, holding company supervision was concentrated at the bank level, not only because the bank tended to constitute the bulk of risk-taking activities but also because the holding company tended to manage the bank separately from the various nonbank activities of the organization.
More recently, however, the focus of supervision of holding companies by the Federal Reserve has been modified to reflect changes in management procedures -- holding companies now tend to manage risk on a consolidated basis across all their bank and nonbank subsidiaries.