The IDFPR's Division of Banking has issued an interpretive letter to ensure that state banks may continue to utilize derivatives transactions to mitigate credit risk. Section 611 of the Dodd-Frank Act prohibits state chartered banks from engaging in derivatives transactions after January 21, 2013 unless such transactions are authorized by the State where a bank is chartered. In its letter, the Division has determined that Section 5(11) of the Illinois Banking Act provides such authority by allowing state chartered banks to participate in any act or transaction which national banks are already permitted to engage in, including derivatives transactions. The letter cautions, though, that state banks participating in derivatives transactions must adhere to safety and soundness principles and to federal lending limits.