The Fed has refined regulatory standards over time at the direction of Congress, most recently pursuant to the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act, 15 and through so-called “tailoring” regulations designed to better align regulation with risk.
For the record, I must say that RBI’s regulatory jurisdiction in the non-bank sector is restricted to NBFCs that are defined as companies in which financial assets comprise more than half the total assets and income from those financial assets constitutes more than half the gross income.