BofA becomes first US bank to adopt SA-CCR

Move cut leverage exposure by $66bn, but other banks wary of trade-offs

Bank of America has switched to a new leverage regime 18 months before US banks are required to move, dramatically cutting its total exposure – but finding itself alone among its domestic rivals.

BofA is expected to use the move to the standardised approach to counterparty credit risk (SA-CCR) as a springboard for its equity prime brokerage business, which consumes less capital under the new rules. Options market-makers have also welcomed the switch, believing they will be more attractive