The Federal Reserve Board ("FRB") final rule implementing single-counterparty credit limits for certain U.S. bank holding companies and foreign banking organizations operating in the United States was published in the Federal Register. The covered organizations have $250 billion or more in total global consolidated assets. The final rule will become effective on October 5, 2018.
As previously reported, the credit limits also will apply to global systemically important banks ("G-SIBs") and foreign banking organizations' U.S. intermediate holding companies with $50 billion in total consolidated assets. G-SIBs will be required to comply with the final rule on January 1, 2020, while all other covered companies must comply by July 1, 2020.
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