FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule. The extension would provide additional time for foreign jurisdictions' versions of the rule to become effective and would apply only to the combined U.S. operations of the foreign banks and not to the U.S. intermediate holding companies of those banks. The proposed revisions impact the information collection titled "Single-Counterparty Credit Limits" (FR 2590). The comment period for this consultation ends on December 20, 2019.
FED had published, on August 06, 2018, in the Federal Register (83 FR 38460) the final SCCL rule, which was modified by a recent rule establishing the risk-based categories for determining prudential standards for large U.S. banking organizations and foreign banking organizations. The final SCCL rule permits a foreign banking organization that is subject to the rule to comply with the requirements applicable to its combined U.S. operations by certifying to FED that it meets, on a consolidated basis, the standards established by its home country supervisor that are consistent with the large exposures framework published by BCBS.
The final SCCL rule (dated August 2018) had an effective date of October 05, 2018 and an initial compliance date of January 01, 2020 for a foreign banking organization that has the characteristics of a global systemically important banking (G-SIB) organization. The final rule also specified an initial compliance date of July 01, 2020 for any other foreign banking organization subject to the rule. FED is now requesting comment on a proposed amendment that would modify these initial compliance dates. The proposed initial compliance dates applicable to the combined U.S. operations of a foreign banking organization would be July 01, 2021 for the organization that has the characteristics of a G-SIB and January 01, 2022 for any other foreign banking organization. However, FED is not proposing any amendment to modify the initial compliance dates in the final rule for, or otherwise amend the application of, single-counterparty credit limits applicable to any U.S. intermediate holding company of a foreign banking organization.
Comment Due Date: December 20, 2019
Keywords: Americas, US, Banking, Foreign Banks, Initial Compliance Date, SCCL, FR 2590, Reporting, G-SIB, Large Exposures, Credit Risk, FED
Previous ArticleCBIRC to Strengthen Supervisory and Policy Support for SME Services
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.