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 ArticleAPRA Decides to Keep Countercyclical Capital Buffer for Banks at 0%
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.