The OCC has issued a final rule that extends from Jan. 1 to July 1 the temporary exception for the application of its lending limits rule to certain credit exposures arising from derivatives and securities-financing transactions.
The OCC noted that in June 2012 it issued an interim final rule implementing a Dodd-Frank Act provision that revised for lending-limit purposes the statutory definition of loans and credit extensions.
The rule, which was effective July 21, 2012, gave banks until Jan. 1, 2013, to comply with its requirements on derivatives transactions and securities-financing transactions. The OCC provided the short-term exception to allow banks time to adjust to compliance with the new standard.
But based on comments received on the interim final rule, the OCC concluded that the Jan. 1 expiration of the temporary exception would not provide enough adjustment time. Therefore the agency -- which previously announced its intention for an April 1 extension -- has extended the temporary exception until July 1.
The OCC expects to issue a final lending limits rule in the first quarter of 2013.