The OCC issued a final rule on Friday extending the temporary exception for the application of its lending limits rule to certain credit exposures from January 2013 to July 2013.
The OCC said that, based on comments received on the interim final rule, the agency decided to extend the January 1, 2013, deadline because it did not provide ample time for financial institutions to develop and implement policies and procedures to come into compliance with section 610 of the Dodd-Frank Act.
Section 610 of Dodd-Frank revised the statutory definition of loans and extensions of credit to include credit exposures resulting from derivative transactions, repurchase agreements, reverse repurchase agreements, securities lending transactions or securities borrowing transactions. The OCC issued in June an interim final rule that integrated the agency’s lending limits rules for national banks, as well as state and federal savings associations, into part 32.
The rule, which took effect in July, required institutions to comply before January 1, 2013, a short-term exception provided to allow firms ample time to comply with the new requirements. The OCC said that, aside from the extension, it is still able to address credit exposures that “present undue concentrations on a case-by-case basis through its existing safety and soundness authorities.”