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FDIC RIN: 3064-AE36 Publication ID: Fall 2016 
Title: Alternatives to Credit Ratings With Respect to Permissible Activities for Foreign Branches of Insured State Nonmember Banks and Pledge of Assets by Insured Domestic Branches of Foreign Banks 

The FDIC sought public comment on a proposed rule to amend its international banking regulations (Part 347) consistent with section 939A (section 939A) of the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and the FDIC’s authority under section 5(c) of the Federal Deposit Insurance Act (FDI Act). Section 939A directs each federal agency to review and modify regulations that reference credit ratings. The rule would amend the provisions of subparts A and B of part 347 that reference credit ratings.  Subpart A, which sets forth the FDIC’s requirements for insured state nonmember banks that operate foreign branches, would be amended to replace references to credit ratings in the definition of ‘‘investment grade’’ with a standard of creditworthiness that has been adopted in other federal regulations that conform with section 939A. Subpart B would be amended to revise the FDIC’s asset pledge requirement for insured U.S. branches of foreign banks. The eligibility criteria for the types of assets that foreign banks may pledge would be amended by replacing the references to credit ratings with the revised definition of investment grade.  The rule would apply this investment grade standard to each type of pledgeable asset, establish a liquidity requirement for such assets, and subject them to a fair value discount. The proposed rule would also introduce cash as a new asset type that foreign banks may pledge under subpart B and create a separate asset category expressly for debt securities issued by government sponsored enterprises.

Agency: Federal Deposit Insurance Corporation(FDIC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 12 CFR 347   
Legal Authority: 12 U.S.C. 1813    12 U.S.C. 1815    12 U.S.C. 1817    12 U.S.C. 1819    ...   
Legal Deadline:  None
Action Date FR Cite
NPRM  06/28/2016  81 FR 41877   
NPRM Comment Period End  08/29/2016 
Final Rule  01/00/2017 
Additional Information: Email: Include the RIN 3064–AE36 on the subject line of the message.
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
International Impacts: This regulatory action will be likely to have international trade and investment effects, or otherwise be of international interest.
RIN Information URL:   Public Comment URL:  
RIN Data Printed in the FR: No 
Agency Contact:
Eric Reither
Capital Markets Specialist
Federal Deposit Insurance Corporation
550 17th Street NW,
Washington, DC 20429
Phone:202 898-3707

Catherine Topping
Federal Deposit Insurance Corporation
550 17th Street NW,
Washington, DC 20429
Phone:202 898-3975

Benjamin J. Klein
Federal Deposit Insurance Corporation
550 17th Street NW,
Washington, DC 20429
Phone:202 898-7027