Therefore, the Board believes it may be unnecessary to impose a separate capital requirement on the bank holding company’s section 20 subsidiary. BIS Review 34/1997  -6-  Remaining Restrictions Before leaving the Board’s proposal, I should also note which restrictions the Board proposed to retain.
The Board proposed to reserve its authority to reimpose the funding, credit extension, and credit enhancement firewalls in the event that an affiliated bank or thrift becomes less than well capitalized and the bank holding company does not promptly restore it to the well-capitalized level.