The Federal Reserve has released final rules for single counterparty credit limits (SCCL) to go live for GSIBs on January 1, 2020. The headlines are clear: a 15% credit exposure limit based on Tier 1 capital to other GSIBs and a 25% limit to everyone else. There are some twists and turns however that should be read carefully.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..