(a) Filing requirement. A foreign bank that operates a branch or
agency or owns or controls a commercial lending company in the United
States, or a company that owns or controls such a foreign bank, may
elect to be treated as a financial holding company by filing a written
declaration with the appropriate Reserve Bank.
(b) Contents of declaration. The declaration
must—
(1) state that the foreign
bank or the company elects to be treated as a financial holding company;
(2) provide the risk-based
capital ratios and amount of tier 1 capital and total assets of the
foreign bank, and of each foreign bank that maintains a U.S. branch,
agency, or commercial lending company and is controlled by the foreign
bank or company, as of the close of the most recent quarter and as
of the close of the most recent audited reporting period;
(3) certify that the foreign
bank, and each foreign bank that maintains a U.S. branch, agency,
or commercial lending company and is controlled by the foreign bank
or company, meets the standards of well capitalized set out in section
225.90(b)(1)(i) and (ii) or section 225.90(b)(2) as of the date the
foreign bank or company files its election;
(4) certify that the foreign bank, and
each foreign bank that maintains a U.S. branch, agency, or commercial
lending company and is controlled by the foreign bank or company,
is well managed as defined in section 225.90(c)(1) as of the date
the foreign bank or company files its election;
(5) certify that all U.S. depository institution
subsidiaries of the foreign bank or company are well capitalized and
well managed as of the date the foreign bank or company files its
election; and
(6) provide
the capital ratios for all relevant capital measures (as defined in
section 38 of the Federal Deposit Insurance Act (12 USC 1831o)) as
of the close of the previous quarter for each U.S. depository institution
subsidiary of the foreign bank or company.
4-057.01
(c) Pre-clearance process. Before
filing an election to be treated as a financial holding company, a
foreign bank or company may file a request for review of its qualifications
to be treated as a financial holding company. The Board will endeavor
to make a determination on such requests within 30 days of receipt.
A foreign bank that has not been found, or that is chartered in a
country where no bank from that country has been found, by the Board
under the Bank Holding Company Act or the International Banking Act
to be subject to comprehensive supervision or regulation on a consolidated
basis by its home country supervisor is required to use this process.
