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Jul 12, 2012

Dodd-Frank: Derivatives and Lending Limits for US and Foreign Banks

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The traditional lending limits applicable to U.S. banks have been tightened by the Dodd-Frank Act by requiring that derivatives and securities financing transactions be included in the calculation. Pursuant to this requirement, the supervisor of national banks has implemented the change with a requirement that national banks be in conformity by the end of 2012. Among other results, this may impose restrictions on many banks’ provision of credit to their customers if they are already close to the limit under existing requirements. Also, the new limits apply to U.S. branches of foreign banks, a fact not mentioned in the announcement.

View full memo, "Dodd-Frank: Derivatives and Lending Limits for US and Foreign Banks"

Authors and Contributors

Bradley K. Sabel

Of Counsel

Financial Institutions Advisory & Financial Regulatory

+1 212 848 8410

+1 212 848 8410

New York

Azam Aziz

Partner

Derivatives & Structured Products

+1 212 848 8154

+1 212 848 8154

New York

Patrick Clancy

Partner

Derivatives & Structured Products

+44 20 7655 5878

+44 20 7655 5878

London

Thomas Donegan

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5566

+44 20 7655 5566

London

Geoffrey Goldman

Partner

Derivatives & Structured Products

+1 212 848 4867

+1 212 848 4867

New York

Donna Parisi

Partner

Derivatives & Structured Products

+1 212 848 7367

+1 212 848 7367

New York

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London