The Federal Reserve Board approved the final rule that outlines the standard regulators will use to determine if a nonbank is systemically important.

"Under the Dodd-Frank Act, the Financial Stability Oversight Council can subject a nonbank to Fed supervision if it determines its activities are financial in nature and pose a risk to the economy," writes American Banker's Rob Blackwell.

The rule says a nonbank is considered to be "engaged in financial activities" if 85% or more of its revenues or assets are financial in nature under the Bank Holding Company Act.

"We see this as removing a hurdle to the Financial Stability Oversight Council designating nonbank financial firms as systemically significant," wrote Jaret Seiberg, an analyst with Guggenheim Partners.

For the full piece see "Fed Finalizes Standard for Declaring Nonbanks a Threat" (may require subscription).