FDIC Adopts Final Rule on Alternatives to References to Credit Ratings
FDIC is adopting the final rule to amend its international banking regulations consistent with section 939A of the Dodd-Frank Act and its authority under section 5(c) of the Federal Deposit Insurance Act. Section 939A directs each federal agency to review and modify regulations that reference credit ratings. The final rule adopts, without change, the revisions and amendments that FDIC proposed in a June 2016 notice of proposed rulemaking. These revisions and amendments include replacing references to credit ratings in the regulation's definition of investment grade with an alternative standard of creditworthiness and making changes to the eligibility criteria for the types of assets that insured branches of foreign banks may pledge for the benefit of FDIC.
Related Link: Federal Notice
Effective Date: April 01, 2018
Keywords: Americas, US, Banking, Credit Ratings, Dodd Frank Act, FDIC
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