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Home Archive for category "Final Rules" (Page 6)
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Federal Reserve Issues Interim Final Rules Clarifying How Banking Organizations Should Incorporate U.S. Basel III Standards Into Capital Plans and Dodd-Frank Stress Tests

Today, the Federal Reserve Board issued two interim final rules that clarify how U.S. banking organizations should incorporate the recently-adopted Basel III capital standards into their capital projections during the next cycle of capital plan submissions and Dodd-Frank stress tests, which will begin in fall 2013.

Blacklines Showing Changes:  We have created blacklines showing changes made by the interim final rules to the Federal Reserve’s existing capital plan and Dodd-Frank stress test regulations.  Links to these blacklines are at the end of this blog post.…  Read More

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Davis Polk Hosts Webcast Series on U.S. Basel III Final Rule

On July 24, 2013, Davis Polk lawyers Luigi L. De Ghenghi and Andrew S. Fei hosted a series of interactive webcasts on the U.S. Basel III final rule. In three separate sessions, the webcasts discussed key aspects of U.S. Basel III for community banks, regional banks, and foreign banking organizations with significant U.S. operations.
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OCC Lending Limits Final Rule: Credit Exposures from Derivatives and Securities Financing Transactions

The OCC has issued a final rule specifying the methods for calculating credit exposure arising from derivatives and securities financing transactions for purposes of the federal lending limits that apply to national banks, federal and state branches and agencies of foreign banks and federal and state savings associations. The final rule reflects a further convergence in methods for measuring credit exposure from derivatives and securities financing transactions between bank capital rules and legal lending limits.

The final rule, like the June 2012 interim final rule that it revises, implements Section 610 of the Dodd-Frank Act, which is one of several provisions in the statute that requires banks to take into account credit exposure arising from derivatives and securities financing transactions in calculating prudential limits. …  Read More

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Federal Reserve Issues Final Rule for Determining When a Company is “Predominantly Engaged in Financial Activities” for Purposes of Title I of the Dodd-Frank Act

Today, the Federal Reserve issued a final rule for determining when a company is “predominantly engaged in financial activities” for purposes of Title I of the Dodd-Frank Act.  The rule will be used by the Financial Stability Oversight Council (FSOC) when it considers the potential designation of a nonbank financial company as systemically important.  Under Title I of the Dodd-Frank Act, a nonbank financial company can be designated as systemically important by the FSOC only if it is “predominantly engaged in financial activities.”

A nonbank financial company that is designated as systemically important by the FSOC will be subject to consolidated supervision by the Federal Reserve and a host of new Dodd-Frank enhanced prudential standards including capital, liquidity, stress testing, single counterparty credit limits, enhanced risk management standards, resolution planning requirements and an early remediation framework.…  Read More

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Basel Committee’s Final Guidance for Managing Risks Associated with the Settlement of Foreign Exchange Transactions

Today, the Basel Committee issued guidance for managing risks associated with the settlement of foreign exchange transactions.  The guidance updates the Basel Committee’s existing supervisory guidance, which was published in 2000.

According to the Basel Committee, while its original 2000 guidance focused mainly on the principal risk element of FX settlement-related risks, the new guidance is intended to address a broader range of FX settlement-related risks.  The new guidance provides more comprehensive and detailed direction on governance arrangements and the management of principal risk as well as all other FX settlement-related risks.  …  Read More

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Basel Committee Revises Basel III Liquidity Coverage Ratio

The Basel Committee has made significant revisions to the Basel III Liquidity Coverage Ratio (LCR). The revised LCR standards allow banks to use a broader range of liquid assets to meet their liquidity buffer and relax some of the run-off assumptions that banks must make in calculating their net cash outflows. The revised standards also clarify that banks may dip below the minimum LCR requirement during periods of stress. The Basel Committee expects national regulators to implement the LCR on a phased-in basis beginning on January 1, 2015.…  Read More

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