(a) Determination
of home state.
(1)
A foreign bank that, as of December 10, 1997, had declared a home
state or had a home state determined pursuant to the law and regulations
in effect prior to that date shall have that state as its home state.
(2) A foreign bank that has any branches,
agencies, commercial lending company subsidiaries, or subsidiary banks
in one state, and has no such offices or subsidiaries in any other
states, shall have as its home state the state in which such offices
or subsidiaries are located.
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(b) Change of home state.
(1) Prior notice. A foreign bank may
change its home state once, if it files 30 days’ prior notice of the
proposed change with the Board.
(2) Application to change home state.
(i) A foreign
bank, in addition to changing its home state by filing prior notice
under paragraph (b)(1) of this section, may apply to the Board to
change its home state, upon showing that a national bank or state-chartered
bank with the same home state as the foreign bank would be permitted
to change its home state to the new home state proposed by the foreign
bank.
(ii) A foreign bank may
apply to the Board for such permission one or more times.
(iii) In determining whether to grant
the request of a foreign bank to change its home state, the Board
shall consider whether the proposed change is consistent with competitive
equity between foreign and domestic banks.
(3) Effect
of change in home state. The home state of a foreign bank and
any change in its home state by a foreign bank shall not affect which
Federal Reserve Bank or Reserve Banks supervise the operations of
the foreign bank, and shall not affect the obligation of the foreign
bank to file required reports and applications with the appropriate
Federal Reserve Bank.
(4) Conforming branches to new home state. Upon
any change in home state by a foreign bank under paragraph (b)(1)
or (b)(2) of this section, the domestic branches of the foreign bank
established in reliance on any previous home state of the foreign
bank shall be conformed to those which a foreign bank with the new
home state could permissibly establish or operate as of the date of
such change.
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(c) Prohibition against
interstate deposit-production offices. A covered interstate branch
of a foreign bank may not be used as a deposit-production office in
accordance with the provisions in section 208.7 of Regulation H (12
CFR 208.7).
