Details

  • Service: Audit
  • Industry: Financial Services, Banking & Capital Markets
  • Type: Business and industry issue, Regulatory update
  • Date: 4/11/2011

Pressure to act now Implications of U.S. Resolution Plans and Credit Exposure reporting for foreign-owned financial institutions 

This brochure discusses the implications of U.S. Resolution Plans and Credit Exposure Reporting for foreign-owned financial institutions.
The U.S. Federal Reserve (Fed) and Federal Deposit Insurance Corporation (FDIC) have announced their proposals for resolution planning for foreign-owned financial institutions, and established a compliance deadline on or about December 31, 2011. Of the estimated 124 “Covered Companies,” a number will be nonbank companies and foreign banks treated as Bank Holding Companies under the International Banking Act. A failure to comply with the new proposals could lead to more stringent capital, leverage, or liquidity requirements or an order to change the operating structure to facilitate an orderly resolution under the U.S. Bankruptcy Code. Read more on how this will impact the G20 ambition of creating a level playing field.