Naharnet

Fed to Tighten Rules for Foreign Banks in U.S.

The Federal Reserve plans to subject large foreign banks to the same rigorous standards applied to U.S. banks, including subjecting them to stress tests, according to draft rules unveiled Friday.

Foreign banks with global assets of more than $50 billion that are active inside the United States will be subject to credit-exposure limits under the regulations, with more lenient rules for smaller foreign banks.

The regulatory regime that was tightened for U.S. banks in the wake of the financial crisis four years ago would be effectively extended to foreign banks doing business in the United States.

The new rules, which if finalized will come into effect on July 1, 2015, would apply to around 107 foreign banks, and another 26 or 27 foreign non-bank financial institutions.

Source: Agence France Presse


Copyright © 2012 Naharnet.com. All Rights Reserved. http://www.naharnet.com/stories/en/64719