US banking regulator says SRTs cannot provide concentration relief

The Office of the Comptroller of the Currency (OCC) has updated its handbook to clarify that synthetic risk transfers can provide capital relief but cannot be used to manage regulatory concentration limits. Mayer Brown partner Matt Bisanz is quoted in the article, noting that while the handbook is not binding, it reflects how the OCC interprets the rules and that banks taking a different position would likely face significant regulatory pushback. Matt also observed that the guidance could create challenges for banks that rely on securitization structures to achieve concentration relief.