Fed's new inter-bank credit rule bows to foreign banks' requests for home-country deference

15 June 2018 7:17am
The US Federal Reserve’s inter-bank loan limits adopted Thursday yielded to foreign banks’ requests that only the very largest of them be subject to the new standards in the United States.

These banks, with at least $250 billion in global assets, also will be allowed to submit to their home-country rules rather than those in the US if the two standards are deemed comparable, the Fed said.

“This modification should address in large part the regulatory burden concerns raised by foreign bank commenters,” Jeffrey Zhang, a Federal Reserve economist, said in a briefing to Fed governors at the Washington vote.