FED Proposes to Extend Initial Compliance Dates Under SCCL Rule
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.
Related Links
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
Featured Experts

Eve Pastor
IFRS subject matter expert, accounting authority

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
CBIRC to Strengthen Supervisory and Policy Support for SME ServicesRelated Articles
News
APRA Publishes Proposal to Increase Transparency of Banking DataAPRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.
December 05, 2019
WebPage
Regulatory News
|
News
ESMA Consults on Guide to Internal Controls for Credit Rating AgenciesESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).
December 05, 2019
WebPage
Regulatory News
|
News
EU Finalizes Directive and Prudential Rules for Investment FirmsEU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.
December 05, 2019
WebPage
Regulatory News
|
News
OSFI Revises Guideline on Principles for Management of Liquidity RiskOSFI finalized Guideline B-6 on the principles for the management of liquidity risk.
December 05, 2019
WebPage
Regulatory News
|
News
PRA Consults on Framework to Manage Outsourcing and Third-Party RiskPRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management.
December 05, 2019
WebPage
Regulatory News
|
News
BoE, PRA, and FCA Consult to Strengthen Operational ResilienceBoE, PRA, and FCA published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.
December 05, 2019
WebPage
Regulatory News
|
News
EC Amends Rule on Mapping of External Credit Assessment InstitutionsEC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.
December 04, 2019
WebPage
Regulatory News
|
News
EBA Issues Second Part of Advice on Implementation of Basel III in EUEBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.
December 04, 2019
WebPage
Regulatory News
|
News
EU Approves European Council Proposal on CCP Recovery and ResolutionEU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.
December 04, 2019
WebPage
Regulatory News
|
News
OSFI Releases Guideline on Foreign Bank Branch Deposit RequirementsOSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement.
December 04, 2019
WebPage
Regulatory News
|