US foreign-bank risk rules should exempt inter-affiliate transactions, banks say

6 September 2019 8:17pm
A US Federal Reserve proposal to reduce capital and liquidity requirements for foreign banks whose US units pose less financial-stability risk should exclude measures of these firms’ inter-affiliate transactions, banking groups said.

The transactions, between a US unit and its overseas headquarters or other affiliates, “are an inevitability and are integral to prudent risk and liquidity management,” the Institute of International Bankers and the Bank Policy Institute said in a recent letter.