(a) In general.
(1) This subpart establishes
single counterparty credit limits for a covered foreign entity.
(2) For purposes of this subpart:
(i) Covered foreign
entity means:
(A)
A Category II foreign banking organization;
(B) A Category III foreign banking organization;
(C) A foreign banking organization with
total consolidated assets that equal or exceed $250 billion;
(D) A Category II U.S. intermediate holding
company; and
(E) A Category III U.S.
intermediate holding company.
(ii) Major foreign banking organization means a foreign banking organization that is a covered foreign entity
and meets the requirements of section 252.172(c)(3) through (5).
(b) Credit exposure
limits.
(1) Section
252.172 establishes credit exposure limits for covered foreign entities
and major foreign banking organizations.
(2) A covered foreign entity is required
to calculate its aggregate net credit exposure, gross credit exposure,
and net credit exposure to a counterparty using the methods in this
subpart.
(c) Applicability
of this subpart.
(1) Foreign banking organizations.
(i) A foreign
banking organization that is a covered foreign entity as of October
5, 2018, must comply with the requirements of this subpart, including
but not limited to section 252.172, beginning on January 1, 2022,
unless that time is extended by the Board in writing.
(ii) Notwithstanding paragraph (c)(1)(i)
of this section, a foreign banking organization that is a major foreign
banking organization as of October 5, 2018, must comply with the requirements
of this subpart, including but not limited to section 252.172, beginning
on July 1, 2021, unless that time is extended by the Board in writing.
(2) U.S. intermediate holding companies.
(i) A U.S. intermediate
holding company that is a covered foreign entity as of October 5,
2018, must comply with the requirements of this subpart, including
but not limited to section 252.172, beginning on July 1, 2020, unless
that time is extended by the Board in writing.
(ii) [Reserved]
(iii) A U.S. intermediate holding company
that becomes a covered foreign entity subject to this subpart after
October 5, 2018, must comply with the requirements of this subpart
beginning on the first day of the ninth calendar quarter after it
becomes a covered foreign entity, unless that time is accelerated
or extended by the Board in writing.
(d) Cessation of requirements.
(1) Foreign banking organizations.
(i) Any foreign banking organization
that becomes a covered foreign entity will remain subject to the requirements
of this subpart unless and until:
(A) The covered foreign entity is not a Category
II foreign banking organization;
(B)
The covered foreign entity is not a Category III foreign banking organization;
and
(C) Its total consolidated assets
fall below $250 billion for each of four consecutive quarters, as
reported on the covered foreign entity’s FR Y-7Q, effective on the
as-of date of the fourth consecutive FR Y-7Q.
(ii) A foreign banking organization
that is a covered foreign entity and that has ceased to be a major
foreign banking organization for purposes of section 252.172(c) is
no longer subject to the requirements of section 252.172(c) beginning
on the first day of the calendar quarter following the reporting date
on which it ceased to be a major foreign banking organization; provided
that the foreign banking organization remains subject to the requirements
of this subpart, unless it ceases to be a foreign banking organization
that is a covered foreign entity pursuant to paragraph (d)(1)(i) of
this section.
(2) U.S. intermediate holding companies.
(i) Any U.S. intermediate
holding company that becomes a covered foreign entity will remain
subject to the requirements of this subpart unless and until:
(A) The covered foreign entity is not
a Category II U.S. intermediate holding company; or
(B) The covered foreign entity is not a Category
III U.S. intermediate holding company.
