(a) Authority. This subpart is issued by the Board of Governors of the Federal
Reserve System (Board) under the authority of the Bank Holding Company
Act of 1956 (12 USC 1841 et seq.) (BHCA); and the International
Banking Act of 1978 (IBA) (12 U.S.C. 3101et seq.).
(b) Purpose and scope. This subpart is in furtherance
of the purposes of the BHC Act and the IBA. It applies to foreign
banks and foreign banking organizations with respect to—
(1) the limitations on interstate banking
under section 5 of the IBA (12 U.S.C. 3103);
(2) the exemptions from the nonbanking
prohibitions of the BHC Act and the IBA afforded by sections 2(h)
and 4(c)(9) of the BHC Act (12 U.S.C. 1841(h) and 1843(c)(9));
(3) Board approval of the establishment
of an office of a foreign bank in the United States under sections
7(d) and 10(a) of the IBA (12 U.S.C. 3105(d), 3107(a));
(4) the termination by the Board of a foreign
bank’s representative office, state branch, state agency, or commercial
lending company subsidiary under sections 7(e) and 10(b) of the IBA
(12 U.S.C. 3105(e), 3107(b)) and the transmission of a recommendation
to the Office of the Comptroller of the Currency to terminate a federal
branch or federal agency under section 7(e)(5) of the IBA (12 U.S.C.
3105(e)(5));
(5) the examination
of an office or affiliate of a foreign bank in the United States as
provided in sections 7(c) and 10(c) of the IBA (12 U.S.C. 3105(c),
3107(c));
(6) the disclosure of
supervisory information to a foreign supervisor under section 15 of
the IBA (12 U.S.C. 3109);
(7) the
limitations on loans to one borrower by state branches and state agencies
of a foreign bank under section 7(h)(2) of the IBA (12 U.S.C. 3105(h)(2));
(8) the limitation of a state branch
and a state agency to conducting only activities that are permissible
for a federal branch under section (7)(h)(1) of the IBA (12 U.S.C.
3105(h)(1));
(9)
the deposit insurance requirement for retail deposit taking by a foreign
bank under section 6 of the IBA (12 U.S.C. 3104); and
(10) the management of shell branches (12
U.S.C. 3105(k)).
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(c) Additional requirements. Compliance by a foreign bank with the
requirements of this subpart and the laws administered and enforced
by the Board does not relieve the foreign bank of responsibility to
comply with the laws and regulations administered by the licensing
authority.
