Sun, Dec 16, 2012 - Page 13 News List

Fed to tighten leash on foreign banks

BOOSTING OVERSIGHT:Among other regulations, foreign banks with US assets of US$50 billion would need to maintain a 30-day buffer of highly liquid assets

Reuters, WASHINGTON

Under the plan, foreign banks with US assets of US$50 billion or more would need to maintain a 30-day buffer of highly liquid assets and conduct internal liquidity tests.

The proposed rules would also limit the credit exposure of a foreign bank to a single counterparty to 25 percent of regulatory capital. Banks would need to set up risk committees, and be subject to US stress tests.

The Fed said approximately 107 foreign banking organizations would be subject to the proposal, and that it expected about 25 intermediate holding companies to be set up.

This story has been viewed 1481 times.
TOP top