The OCC issued a final rule on August 15 that amends the OCC’s rule governing lending limits applicable to banks to include credit exposures arising from derivative transactions and repurchase agreements, reverse repurchase agreements, securities lending transactions, and securities borrowing transactions (collectively referred to as securities financing transactions) as required by the Dodd-Frank Act.

Nutter Notes: An earlier interim final rule contained a temporary exception period through July 1, 2013, for the application of the rule’s requirements as to derivative transactions and securities financing transactions. The final rule extends the temporary exception period through October 1, 2013, to allow additional time for banks to comply with the final rule. All other amendments made by the final rule will become effective on October 1, 2013.