(a) General applicability.
(1) A foreign banking
organization must:
(i) Comply with the requirements of this subpart (other than the
U.S. intermediate holding company requirement set forth in section
252.153) beginning on the first day of the ninth quarter following
the date on which its average combined U.S. assets equal or exceed
$100 billion; and
(ii) Comply
with the requirement to establish or designate a U.S. intermediate
holding company requirement set forth in section 252.153(a) beginning
on the first day of the ninth quarter following the date on which
its average U.S. non-branch assets equal or exceed $50 billion or,
if the foreign banking organization has established or designated
a U.S. intermediate holding company pursuant to section 252.147, beginning
on the first day following the date on which the foreign banking organization’s
average combined U.S. assets equal or exceed $100 billion.
(2) Changes
in requirements following a change in category. A foreign banking
organization that changes from one category of banking organization
described in section 252.5(c) through (e) to another of such categories
must comply with the requirements applicable to the new category under
this subpart no later than on the first day of the second quarter
following the change in the foreign banking organization’s category.
(b) Cessation of requirements.
(1) Enhanced prudential standards applicable to
the foreign banking organization. Subject to paragraph (c)(2)
of this section, a foreign banking organization will remain subject
to the applicable requirements of this subpart until its combined
U.S. assets are below $100 billion for each of four consecutive calendar
quarters.
(2) Intermediate holding company requirement. A foreign banking organization will remain subject to the U.S. intermediate
holding company requirement set forth in section 252.153 until the
sum of the total consolidated assets of the top-tier U.S. subsidiaries
of the foreign banking organization (excluding any section 2(h)(2)
company and DPC branch subsidiary) is below $50 billion for each of
four consecutive calendar quarters, or until the foreign banking organization
is subject to subpart N of this part and is in compliance with the
U.S. intermediate holding company requirements as set forth in section
252.147.
