ABA Welcomes 18-Month Extension for SCCL Final Rule

The American Bankers Association today welcomed the Federal Reserve’s proposal for an 18-month extension of the compliance date for limits on the amount of credit exposure that foreign banking organizations can have to each other and to other counterparties.

The Fed proposed to extend the effective date until July 1, 2021, for FBOs with characteristics of a global systemically important banking organization and Jan. 1, 2022, for all other FBOs subject to the rule, which ABA said “provides a crucial transition period for the home country jurisdiction’s rules to ultimately take effect.”

ABA urged the Fed to finalize the extension as quickly as possible, since just a couple weeks remain before the Jan. 1 compliance deadline for FBOs with GSIB characteristics.