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Can you summarize 3 NYCRR Part 117?
General Regulations of the Superintendent > Lending Limits: Inclusion of Credit Exposures Arising from Derivative Transactions
Short Summary
The provided legal document, part of the New York Codes, Rules and Regulations, governs the inclusion of credit exposures arising from derivative transactions in lending limits for banks operating in New York. It outlines guidelines for calculating credit exposures to a counterparty and with respect to a reference exposure arising from credit derivatives. The document allows banks to utilize alternate methods to evaluate their credit exposures and provides exposure mitigants that can be taken into account when computing the exposures. It specifies that credit exposures arising from derivative transactions should be included when calculating the amount of loans outstanding to a person or borrower under the Banking Law. However, credit exposures to a qualifying central counterparty designated as a systemically important financial market utility are exempted from inclusion. The document defines various terms related to credit exposures and provides definitions for terms used in the Capital Adequacy Guidelines for Banks. It applies to banks operating in New York, including bank or trust companies or savings banks insured by the FDIC. No specific exemptions or penalties are mentioned in the document.
Whom does it apply to?
Banks operating in New York, including bank or trust companies or savings banks insured by the FDIC
What does it govern?
Inclusion of credit exposures arising from derivative transactions in lending limits
What are exemptions?
Credit exposures to a qualifying central counterparty designated by the Financial Stability Oversight Council as a systemically important financial market utility
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York