May 1, 2020 / 5:08 PM / a month ago

U.S. Fed delays single counterparty rule for foreign banks

FILE PHOTO: The Federal Reserve seal is seen during Chairman Jerome Powell news conference following the two-day meeting of the Federal Open Market Committee (FOMC) meeting on interest rate policy in Washington, U.S., January 29, 2020. REUTERS/Yuri Gripas/File Photo

WASHINGTON (Reuters) - The Federal Reserve announced Friday that it was delaying for 18 months a new rule limiting how much exposure the U.S. operations of foreign banks can have to a single counterparty.

The rule will now take effect by July 1, 2021, giving foreign jurisdictions more time to establish similar requirements that foreign banks could opt to follow instead. The Fed previously proposed delaying this part of the rule in November.

Reporting by Pete Schroeder; Editing by Chizu Nomiyama

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