On February 26, 2021, the Board of Governors of the Federal Reserve System (FRB) in the United States issued expectations for boards of large financial institutions as a standard for its regulators when they assess board effectiveness. The guidance applies to all domestic bank holding companies and savings and loan holding companies with total consolidated assets of US$100 billion or more. Its focus applies to the board’s role in maintaining the firm’s safety and soundness and responsibility for sustaining financial and operational resilience.

In this issue of Board Perspectives, we outline the FRB’s principles-based guidance and discuss its significance.