Title 12 — Banks and Banking
Chapter 32 — Foreign Bank Participation in Domestic Markets
§ 3105. Authority of Federal Reserve System
Statutory text
Bank reserves
Except as provided in paragraph (2) of this subsection, sections 371a,1 371b, 371b–1,1 374, 374a, 461, 464, and 465 of this title shall apply to every Federal branch and Federal agency of a foreign bank in the same manner and to the same extent as if the Federal branch or Federal agency were a member bank as that term is defined in section 221 of this title; but the Board either by general or specific regulation or ruling may waive the minimum and maximum reserve ratios prescribed under sections 461, 463, 464, 465, and 466 of this title and may prescribe any ratio, not more than 22 per centum, for any obligation of any such Federal branch or Federal agency that the Board may deem reasonable and appropriate, taking into consideration the character of business conducted by such institutions and the need to maintain vigorous and fair competition between and among such institutions and member banks. The Board may impose reserve requirements on Federal branches and Federal agencies in such graduated manner as it deems reasonable and appropriate.
After consultation and in cooperation with the State bank supervisory authorities, the Board may make applicable to any State branch or State agency any requirement made applicable to, or which the Board has authority to impose upon, any Federal branch or agency under subparagraph (A) of this paragraph.
A branch or agency shall be subject to this subsection only if (A) its parent foreign bank has total worldwide consolidated bank assets in excess of $1,000,000,000; (B) its parent foreign bank is controlled by a foreign company which owns or controls foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000; or (C) its parent foreign bank is controlled by a group of foreign companies that own or control foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000.
Omitted
Foreign bank examinations and reporting
Examination of branches, agencies, and affiliates
In general
The Board may examine each branch or agency of a foreign bank, each commercial lending company or bank controlled by 1 or more foreign banks or 1 or more foreign companies that control a foreign bank, and other office or affiliate of a foreign bank conducting business in any State.
Coordination of examinations
In general
The Board shall coordinate examinations under this paragraph with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and appropriate State bank supervisors to the extent such coordination is possible.
Simultaneous examinations
The Board may request simultaneous examinations of each office of a foreign bank and each affiliate of such bank operating in the United States.
Avoidance of duplication
In exercising its authority under this paragraph, the Board shall take all reasonable measures to reduce burden and avoid unnecessary duplication of examinations.
On-site examination
Each Federal branch or agency, and each State branch or agency, of a foreign bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor as frequently as would a national bank or a State bank, respectively, by the appropriate Federal banking agency.
Cost of examinations
The cost of any examination under subparagraph (A) shall be assessed against and collected from the foreign bank or the foreign company that controls the foreign bank, as the case may be, only to the same extent that fees are collected by the Board for examination of any State member bank.
Reporting requirements
Each branch or agency of a foreign bank, other than a Federal branch or agency, shall be subject to section 335 of this title and the provision requiring the reports of condition contained in section 324 of this title to the same extent and in the same manner as if the branch or agency were a State member bank. In addition to any requirements imposed under section 3102 of this title, each Federal branch and agency shall be subject to section 248(a) of this title and to section 483 of this title to the same extent and in the same manner as if it were a member bank.
Establishment of foreign bank offices in United States
Prior approval required
No foreign bank may establish a branch or an agency, or acquire ownership or control of a commercial lending company, without the prior approval of the Board.
Required standards for approval
Except as provided in paragraph (6), the Board may not approve an application under paragraph (1) unless it determines that—
the foreign bank engages directly in the business of banking outside of the United States and is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and
the foreign bank has furnished to the Board the information it needs to adequately assess the application.
Standards for approval
In acting on any application under paragraph (1), the Board may take into account—
whether the appropriate authorities in the home country of the foreign bank have consented to the proposed establishment of a branch, agency or commercial lending company in the United States by the foreign bank;
the financial and managerial resources of the foreign bank, including the bank’s experience and capacity to engage in international banking;
whether the foreign bank has provided the Board with adequate assurances that the bank will make available to the Board such information on the operations or activities of the foreign bank and any affiliate of the bank that the Board deems necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], and other applicable Federal law;
whether the foreign bank and the United States affiliates of the bank are in compliance with applicable United States law; and
for a foreign bank that presents a risk to the stability of United States financial system, whether the home country of the foreign bank has adopted, or is making demonstrable progress toward adopting, an appropriate system of financial regulation for the financial system of such home country to mitigate such risk.
Factor
In acting on an application under paragraph (1), the Board shall not make the size of the foreign bank the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this chapter.
Establishment of conditions
The Board may impose such conditions on its approval under this subsection as it deems necessary.
Exception
In general
If the Board is unable to find, under paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless approve an application by such foreign bank under paragraph (1) if—
the appropriate authorities in the home country of the foreign bank are actively working to establish arrangements for the consolidated supervision of such bank; and
all other factors are consistent with approval.
Other considerations
In deciding whether to use its discretion under subparagraph (A), the Board shall also consider whether the foreign bank has adopted and implements procedures to combat money laundering. The Board may also take into account whether the home country of the foreign bank is developing a legal regime to address money laundering or is participating in multilateral efforts to combat money laundering.
Additional conditions
In approving an application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the Currency, as the case may be, may impose such conditions or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources of funding, as are considered appropriate. The Board shall coordinate with the appropriate State bank supervisor or the Comptroller of the Currency, as appropriate, in the implementation of such conditions or restrictions.
Modification of conditions
Any condition or restriction imposed by the Board in connection with the approval of an application under authority of this paragraph may be modified or withdrawn.
Time period for Board action
Final action
The Board shall take final action on any application under paragraph (1) not later than 180 days after receipt of the application, except that the Board may extend for an additional 180 days the period within which to take final action on such application after providing notice of, and the reasons for, the extension to the applicant foreign bank and any appropriate State bank supervisor or the Comptroller of the Currency, as appropriate.
Failure to submit information
The Board may deny any application if it does not receive information requested from the applicant foreign bank or appropriate authorities in the home country of the foreign bank in sufficient time to permit the Board to evaluate such information adequately within the time periods for final action set forth in subparagraph (A).
Waiver
A foreign bank may waive the applicability of this paragraph with respect to any application under paragraph (1).
Termination of foreign bank offices in United States
Standards for termination
The Board, after notice and opportunity for hearing and notice to any appropriate State bank supervisor, may order a foreign bank that operates a State branch or agency or commercial lending company subsidiary in the United States to terminate the activities of such branch, agency, or subsidiary if the Board finds that—
the foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and
the appropriate authorities in the home country of the foreign bank are not making demonstrable progress in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated basis;
there is reasonable cause to believe that such foreign bank, or any affiliate of such foreign bank, has committed a violation of law or engaged in an unsafe or unsound banking practice in the United States; and
as a result of such violation or practice, the continued operation of the foreign bank’s branch, agency or commercial lending company subsidiary in the United States would not be consistent with the public interest or with the purposes of this chapter, the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], or the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]; or
for a foreign bank that presents a risk to the stability of the United States financial system, the home country of the foreign bank has not adopted, or made demonstrable progress toward adopting, an appropriate system of financial regulation to mitigate such risk.
However, in making findings under this paragraph, the Board shall not make size the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this chapter.
Discretion to deny hearing
The Board may issue an order under paragraph (1) without providing for an opportunity for a hearing if the Board determines that expeditious action is necessary in order to protect the public interest.
Effective date of termination order
An order issued under paragraph (1) shall take effect before the end of the 120-day period beginning on the date such order is issued unless the Board extends such period.
Compliance with State and Federal law
Any foreign bank required to terminate activities conducted at offices or subsidiaries in the United States pursuant to this subsection shall comply with the requirements of applicable Federal and State law with respect to procedures for the closure or dissolution of such offices or subsidiaries.
Recommendation to agency for termination of a Federal branch or agency
The Board may transmit to the Comptroller of the Currency a recommendation that the license of any Federal branch or Federal agency of a foreign bank be terminated in accordance with section 3102(i) of this title if the Board has reasonable cause to believe that such foreign bank or any affiliate of such foreign bank has engaged in conduct for which the activities of any State branch or agency may be terminated under paragraph (1).
Enforcement of orders
In general
In the case of contumacy of any office or subsidiary of the foreign bank against which—
the Board has issued an order under paragraph (1); or
the Comptroller of the Currency has issued an order under section 3102(i) of this title,
or a refusal by such office or subsidiary to comply with such order, the Board or the Comptroller of the Currency may invoke the aid of the district court of the United States within the jurisdiction of which the office or subsidiary is located.
Court order
Any court referred to in subparagraph (A) may issue an order requiring compliance with an order referred to in subparagraph (A).
Criteria relating to foreign supervision
Not later than 1 year after , the Board, in consultation with the Secretary of the Treasury, shall develop and publish criteria to be used in evaluating the operation of any foreign bank in the United States that the Board has determined is not subject to comprehensive supervision or regulation on a consolidated basis. In developing such criteria, the Board shall allow reasonable opportunity for public review and comment.
Judicial review
Jurisdiction of United States courts of appeals
Any foreign bank—
whose application under subsection (d) or section 3107(a) of this title has been disapproved by the Board;
against which the Board has issued an order under subsection (e) or section 3107(b) of this title; or
against which the Comptroller of the Currency has issued an order under section 3102(i) of this title,
may obtain a review of such order in the United States court of appeals for any circuit in which such foreign bank operates a branch, agency, or commercial lending company that has been required by such order to terminate its activities, or in the United States Court of Appeals for the District of Columbia Circuit, by filing a petition for review in the court before the end of the 30-day period beginning on the date the order was issued.
Scope of judicial review
Section 706 of title 5 (other than paragraph (2)(F) of such section) shall apply with respect to any review under paragraph (1).
Consultation with State bank supervisor
The Board shall request and consider any views of the appropriate State bank supervisor with respect to any application or action under subsection (d) or (e).
Limitations on powers of State branches and agencies
In general
After the end of the 1-year period beginning on , a State branch or State agency may not engage in any type of activity that is not permissible for a Federal branch unless—
the Board has determined that such activity is consistent with sound banking practice; and
in the case of an insured branch, the Federal Deposit Insurance Corporation has determined that the activity would pose no significant risk to the deposit insurance fund.
Single borrower lending limit
A State branch or State agency shall be subject to the same limitations with respect to loans made to a single borrower as are applicable to a Federal branch or Federal agency under section 3102(b) of this title.
Other authority not affected
This section does not limit the authority of the Board or any State supervisory authority to impose more stringent restrictions.
Proceedings related to conviction for money laundering offenses
Notice of intention to issue order
If the Board finds or receives written notice from the Attorney General that—
any foreign bank which operates a State agency, a State branch which is not an insured branch, or a State commercial lending company subsidiary;
any State agency;
any State branch which is not an insured branch; or
any State commercial lending subsidiary,
has been found guilty of any money laundering offense, the Board shall issue a notice to the agency, branch, or subsidiary of the Board’s intention to commence a termination proceeding under subsection (e).
Definitions
For purposes of this subsection—
Insured branch
The term “insured branch” has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act [12 U.S.C. 1813(s)].
Money laundering offense defined
The term “money laundering offense” means any criminal offense under section 1956 or 1957 of title 18 or under section 5322 of title 31.
Study on equivalence of foreign bank capital
Not later than 180 days after , the Board and the Secretary of the Treasury shall jointly submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report—
analyzing the capital standards contained in the framework for measurement of capital adequacy established by the Supervisory Committee of the Bank for International Settlements, foreign regulatory capital standards that apply to foreign banks conducting banking operations in the United States, and the relationship of the Basle and foreign standards to risk-based capital and leverage requirements for United States banks; and
establishing guidelines for the adjustments to be used by the Board in converting data on the capital of such foreign banks to the equivalent risk-based capital and leverage requirements for United States banks for purposes of determining whether a foreign bank’s capital level is equivalent to that imposed on United States banks for purposes of determinations under this section and sections 3 and 4 of the Bank Holding Company Act of 1956 [12 U.S.C. 1842, 1843].
An update shall be prepared annually explaining any changes in the analysis under paragraph (1) and resulting changes in the guidelines pursuant to paragraph (2).
Management of shell branches
Transactions prohibited
A branch or agency of a foreign bank shall not manage, through an office of the foreign bank which is located outside the United States and is managed or controlled by such branch or agency, any type of activity that a bank organized under the laws of the United States, any State, or the District of Columbia is not permitted to manage at any branch or subsidiary of such bank which is located outside the United States.
Regulations
Any regulations promulgated to carry out this section—
shall be promulgated in accordance with section 3108 of this title; and
shall be uniform, to the extent practicable.
Footnotes
- 1 See References in Text note below.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
International Banking Act of 1978
Pub. L. 95–369 § 7 · 92 Stat. 607
Enacted · 12 U.S.C. § 3105
Pub. L. 95–369, § 7, Sept. 17, 1978, 92 Stat. 620
Source evidence
Code source credit
Pub. L. 95–369, § 7, Sept. 17, 1978, 92 Stat. 620Enacted provision · exact public law section
Sec. 7. authority of federal reserve system (a) (1) (A) Except as provided in paragraph (2) of this 12 USC 3105. subsection, subsections (a), (b), (c), (d), (f), (g), (i), (j), (k), and the second sentence of subsection (e) of section 19 of the Federal Reserve Act shall apply to every Federal branch and Federal agency of 12 USC 461, 374a, 464–466, 371a, 371b, 371b–1, 374, 463. 12 USC 221. a foreign bank in the same manner and to the same extent as if the Federal branch or Federal agency were a member bank as that term is defined in section 1 of the Federal Reserve Act; but the Board either by general or specific regulation or ruling may waive the minimum and maximum reserve ratios prescribed under section 19 of the Federal Reserve Act and may prescribe any ratio, not more than 22 per centum, for any obligation of any such Federal branch or Federal agency that the Board may deem reasonable and appropriate, taking into consideration the character of business conducted by such institutions and the need to maintain vigorous and fair competition between and among such institutions and member banks. The Board may impose reserve requirements on Federal branches and Federal agencies in such graduated manner as it deems reasonable and appropriate. (B) After consultation and in cooperation with the State bank supervisory authorities, the Board may make applicable to any State branch or State agency any requirement made applicable to, or which the Board has authority to impose upon, any Federal branch or agency under subparagraph (A) of this paragraph. (2) A branch or agency shall be subject to this subsection only if (A) its parent foreign bank has total worldwide consolidated bank assets in excess of $1,000,000,000; (B) its parent foreign bank is controlled by a foreign company which owns or controls foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000; or (C) its parent foreign bank is controlled by a group of foreign companies that own or control foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000. (b) Section 13 of the Federal Reserve Act is amended by adding at 12 USC 347d. 12 USC 82, 342–347, 347c, 372. the end thereof the following new paragraph: “Subject to such restrictions, limitations, and regulations as may be imposed by the Board of Governors of the Federal Reserve System, each Federal Reserve bank may receive deposits from, discount paper endorsed by, and make advances to any branch or agency of a foreign bank in the same manner and to the same extent that it may exercise such powers with respect to a member bank if such branch or agency is maintaining reserves with such Reserve bank pursuant to section 7 of the International Banking Act of 1978. In exercising any such powers with respect to any such branch or agency, each Federal Reserve bank shall give due regard to account balances being maintained by such branch or agency with such Reserve bank and the proportion of the assets of such branch or agency being held as reserves under section 7 of the International Banking Act of 1978. For the Definitions. purposes of this paragraph, the terms ‘branch’, ‘agency’, and ‘foreign bank’ shall have the same meanings assigned to them in section 1 of the International Banking Act of 1978.”. (c) (1) The Board may make examinations of each branch or agency 12 USC 3105. of a foreign bank, and of each commercial lending company or bank controlled by one or more foreign banks or by one or more foreign companies that control a foreign bank, the cost of which shall be assessed against and paid by such foreign bank or company, as the case may be. The Board shall, insofar as possible, use the reports of examinations made by the Comptroller, the Federal Deposit Insurance Corporation, or the appropriate State bank supervisory authority for the purposes of this subsection. (2) Each branch or agency of a foreign bank, other than a Federal branch or agency, shall be subject to paragraph 20 and the provision requiring the reports of condition contained in paragraph 6 of section 9 of the Federal Reserve Act (12 U.S.C. 335 and 324) to the same extent and in the same manner as if the branch or agency were a State member bank. In addition to any requirements imposed under section 4 of this Act, each Federal branch and agency shall be subject to subparagraph (a) of section 11 of the Federal Reserve Act (12 U.S.C. 248(a)) and to paragraph 5 of section 21 of the Federal Reserve Act (12 U.S.C. 483) to the same extent and in the same manner as if it were a member bank. (d) On or before two years after enactment of this Act, the Board Report to congressional committees. after consultation with the appropriate State bank supervisory authorities shall report to the Committee on Banking, Finance and Urban Affairs of the United States House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the United States Senate its recommendations with respect to the implementation of this Act, including any recommended requirements such as limitations on loans to affiliates or capital adequacy requirements which should be imposed on foreign banks to carry out the purposes of this Act. Not later than one hundred and eighty days after the enactment of this Act, the Board shall report to such Committees the steps which have been taken to consult and cooperate with State bank supervisory authorities as required by subsection (a) (1) (B).Foreign Bank Supervision Enhancement Act of 1991
Pub. L. 102–242 § 203(a) · 105 Stat. 2236
Added · 12 U.S.C. § 3105(c)
Pub. L. 102–242, § 203(a), added par. (1)
Inserted · 12 U.S.C. § 3105(c)
Pub. L. 102–242, § 203(a), inserted heading for par. (2)
Struck · 12 U.S.C. § 3105(c)
Pub. L. 102–242, § 203(a), struck out former par. (1) which read as follows: “The Board may make examinations of each branch or agency of a foreign bank, and of each commercial lending company or bank controlled by one or more foreign banks or by one or more foreign companies that control a foreign bank, the cost of which shall be assessed against and paid by such foreign bank or company, as the case may be. The Board shall, insofar as possible, use the reports of examinations made by the Comptroller, the Federal Deposit Insurance Corporation, or the appropriate State bank supervisory authority for the purposes of this subsection.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 102–242, § 203(a), added par. (1), inserted heading for par. (2), and struck out former par. (1) which read as follows: “The Board may make examinations of each branch or agency of a foreign bank, and of each commercial lending company or bank controlled by one or more foreign banks or by one or more foreign companies that control a foreign bank, the cost of which shall be assessed against and paid by such foreign bank or company, as the case may be. The Board shall, insofar as possible, use the reports of examinations made by the Comptroller, the Federal Deposit Insurance Corporation, or the appropriate State bank supervisory authority for the purposes of this subsection.”Enacted provision · exact public law section
(a) Authority of Board To Conduct and Coordinate Examinations.— Section 7(c) of the International Banking Act of 1978 (12 U.S.C. 3105(b)) is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Examination of branches, agencies, and affiliates.— “(A) In general.— The Board may examine each branch or agency of a foreign bank, each commercial lending company or bank controlled by 1 or more foreign banks or 1 or more foreign companies that control a foreign bank, and other office or affiliate of a foreign bank conducting business in any State. “(B) Coordination of examinations.— “(i) In general.— The Board shall coordinate examinations under this paragraph with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and appropriate State bank supervisors to the extent such coordination is possible. “(ii) Simultaneous examinations.— The Board may request simultaneous examinations of each office of a foreign bank and each affiliate of such bank operating in the United States. “(C) Annual on-site examination.— Each branch or agency of a foreign bank shall be examined at least once during each 12-month period (beginning on the date the most recent examination of such branch or agency ended) in an on-site examination. “(D) Cost of examinations.— The cost of any examination under subparagraph (A) shall be assessed against and collected from the foreign bank or the foreign company that controls the foreign bank, as the case may be.”; and (2) in paragraph (2), by inserting “Reporting requirements.—” before “Each branch”.Foreign Bank Supervision Enhancement Act of 1991
Pub. L. 102–242 § 202(a) · 105 Stat. 2236
Added · 12 U.S.C. § 3105(d)(h)
Pub. L. 102–242, § 202(a), added subsecs. (d) to (h)
Struck · 12 U.S.C. § 3105(d)(h)
Pub. L. 102–242, § 202(a), struck out former subsec. (d) which read as follows: “On or before two years after September 17, 1978, the Board after consultation with the appropriate State bank supervisory authorities shall report to the Committee on Banking, Finance and Urban Affairs of the United States House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the United States Senate its recommendations with respect to the implementation of this chapter, including any recommended requirements such as limitations on loans to affiliates or capital adequacy requirements which should be imposed on foreign banks to carry out the purposes of this chapter. Not later than one hundred and eighty days after September 17, 1978, the Board shall report to such Committees the steps which have been taken to consult and cooperate with State bank supervisory authorities as required by subsection (a)(1)(B) of this section.”
Source evidence
Code amendment note
Subsecs. (d) to (h). Pub. L. 102–242, § 202(a), added subsecs. (d) to (h) and struck out former subsec. (d) which read as follows: “On or before two years after September 17, 1978, the Board after consultation with the appropriate State bank supervisory authorities shall report to the Committee on Banking, Finance and Urban Affairs of the United States House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the United States Senate its recommendations with respect to the implementation of this chapter, including any recommended requirements such as limitations on loans to affiliates or capital adequacy requirements which should be imposed on foreign banks to carry out the purposes of this chapter. Not later than one hundred and eighty days after September 17, 1978, the Board shall report to such Committees the steps which have been taken to consult and cooperate with State bank supervisory authorities as required by subsection (a)(1)(B) of this section.”Enacted provision · exact public law section
(a) Establishment and Termination of Foreign Bank Offices in the United States.— Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105) is amended by striking subsection (d) and inserting the following new subsections: “(d) Establishment of Foreign Bank Offices in the United States .— “(1) Prior approval required.— No foreign bank may establish a branch or an agency, or acquire ownership or control of a commercial lending company, without the prior approval of the Board. “(2) Required standards for approval.— The Board may not approve an application under paragraph (1) unless it determines that— “(A) the foreign bank engages directly in the business of banking outside of the United States and is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and “(B) the foreign bank has furnished to the Board the information it needs to adequately assess the application. “(3) Standards for approval.— In acting on any application under paragraph (1), the Board may take into account— “(A) whether the appropriate authorities in the home country of the foreign bank have consented to the proposed establishment of a branch, agency or commercial lending company in the United States by the foreign bank; “(B) the financial and managerial resources of the foreign bank, including the bank’s experience and capacity to engage in international banking; “(C) whether the foreign bank has provided the Board with adequate assurances that the bank will make available to the Board such information on the operations or activities of the foreign bank and any affiliate of the bank that the Board deems necessary to determine and enforce compliance with this Act, the Bank Holding Company Act of 1956, and other applicable Federal law; and “(D) whether the foreign bank and the United States affiliates of the bank are in compliance with applicable United States law. “(4) Factor.— In acting on an application under paragraph (1), the Board shall not make the size of the foreign bank the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this Act. “(5) Establishment of conditions.— Consistent with the standards for approval in paragraph (2), the Board may impose such conditions on its approval under this subsection as it deems necessary. “(e) Termination of Foreign Bank Offices in the United States.— “(1) Standards for termination.— The Board, after notice and opportunity for hearing and notice to any appropriate State bank supervisor, may order a foreign bank that operates a State branch or agency or commercial lending company subsidiary in the United States to terminate the activities of such branch, agency, or subsidiary if the Board finds that— “(A) the foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; or “(B) (i) there is reasonable cause to believe that such foreign bank, or any affiliate of such foreign bank, has committed a violation of law or engaged in an unsafe or unsound banking practice in the United States; and “(ii) as a result of such violation or practice, the continued operation of the foreign bank’s branch, agency or commercial lending company subsidiary in the United States would not be consistent with the public interest or with the purposes of this Act, the Bank Holding Company Act of 1956, or the Federal Deposit Insurance Act. However, in making findings under this paragraph, the Board shall not make size the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this Act. “(2) Discretion to deny hearing.— The Board may issue an order under paragraph (1) without providing for an opportunity for a hearing if the Board determines that expeditious action is necessary in order to protect the public interest. “(3) Effective date of termination order.— An order issued under paragraph (1) shall take effect before the end of the 120-day period beginning on the date such order is issued unless the Board extends such period. “(4) Compliance with state and federal law.— Any foreign bank required to terminate activities conducted at offices or subsidiaries in the United States pursuant to this subsection shall comply with the requirements of applicable Federal and State law with respect to procedures for the closure or dissolution of such offices or subsidiaries. “(5) Recommendation to agency for termination of a federal branch or agency.— The Board may transmit to the Comptroller of the Currency a recommendation that the license of any Federal branch or Federal agency of a foreign bank be terminated in accordance with section 4(i) if the Board has reasonable cause to believe that such foreign bank or any affiliate of such foreign bank has engaged in conduct for which the activities of any State branch or agency may be terminated under paragraph (1). “(6) Enforcement of orders.— “(A) In general.— In the case of contumacy of any office or subsidiary of the foreign bank against which the Board or, in the case of an order issued under section 4(i), the Comptroller of the Currency has issued an order under paragraph (1) or a refusal by such office or subsidiary to comply with such order, the Board or the Comptroller of the Currency may invoke the aid of the district court of the United States within the jurisdiction of which the office or subsidiary is located. “(B) Court order.— Any court referred to in subparagraph (A) may issue an order requiring compliance with an order issued under paragraph (1). “(7) Criteria relating to foreign supervision.— Not later than 1 year after the date of enactment of this subsection, the Board, in consultation with the Secretary of the Treasury, shall develop and publish criteria to be used in evaluating the operation of any foreign bank in the United States that the Board has determined is not subject to comprehensive supervision or regulation on a consolidated basis. In developing such criteria, the Board shall allow reasonable opportunity for pubic review and comment. “(f) Judicial Review.— “(1) Jurisdiction of united states courts of appeals.— Any foreign bank— “(A) whose application under subsection (d) or section 10(a) has been disapproved by the Board; “(B) against which the Board has issued an order under subsection (e) or section 10(b); or “(C) against which the Comptroller of the Currency has issued an order under section 4(i) of this Act, may obtain a review of such order in the United States court of appeals for any circuit in which such foreign bank operates a branch, agency, or commercial lending company that has been required by such order to terminate its activities, or in the United States Court of Appeals for the District of Columbia Circuit, by filing a petition for review in the court before the end of the 30-day period beginning on the date the order was issued. “(2) Scope of judicial review.— Section 706 of title 5, United States Code (other than paragraph (2)(F) of such section) shall apply with respect to any review under paragraph (1). “(g) Consultation With State Bank Supervisor.— The Board shall request and consider any views of the appropriate State bank supervisor with respect to any application or action under subsection (d) or (e). “(h) Limitations on Powers of State Branches and Agencies.— “(1) In general.— After the end of the 1-year period beginning on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, a State branch or State agency may not engage in any type of activity that is not permissible for a Federal branch unless— “(A) the Board has determined that such activity is consistent with sound banking practice; and “(B) in the case of an insured branch, the Federal Deposit Insurance Corporation has determined that the activity would pose no significant risk to the deposit insurance fund. “(2) Single borrower lending limit.— A State branch or State agency shall be subject to the same limitations with respect to loans made to a single borrower as are applicable to a Federal branch or Federal agency under section 4(b). “(3) Other authority not affected.— This section does not limit the authority of the Board or any State supervisory authority to impose more stringent restrictions.”.Foreign Bank Supervision Enhancement Act of 1991
Pub. L. 102–242 § 214(b) · 105 Stat. 2236
Amended · 12 U.S.C. § 3105(j)
Pub. L. 102–242, § 214(b), as amended by Pub. L. 102–550, § 1604(a)(12)
Added · 12 U.S.C. § 3105(j)
Pub. L. 102–242, § 214(b), as added subsec. (j)
Source evidence
Code amendment note
Subsec. (j). Pub. L. 102–242, § 214(b), as amended by Pub. L. 102–550, § 1604(a)(12), added subsec. (j).Enacted provision · exact public law section
(b) Section 7.— Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105) is amended by adding at the end the following new subsection: “(j) Reports. Study on Equivalence of Foreign Bank Capital.— Not later than 180 days after enactment of this subsection, the Board and the Secretary of the Treasury shall jointly submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report— “(1) analyzing the capital standards contained in the framework for measurement of capital adequacy established by the Supervisory committee of the Bank for International Settlements, foreign regulatory capital standards that apply to foreign banks conducting banking operations in the United States, and the relationship of the Basle and foreign standards to risk-based capital and leverage requirements for United States banks; and “(2) establishing guidelines for the adjustments to be used by the Board in converting data on the capital of such foreign banks to the equivalent risk-based capital and leverage requirements for United States banks for purposes of determining whether a foreign bank’s capital level is equivalent to that imposed on United States banks for purposes of determinations under section 7 of the International Banking Act of 1978 and sections 3 and 4 of the Bank Holding Company Act of 1956. An update shall be prepared annually explaining any changes in the analysis under paragraph (1) and resulting changes in the guidelines pursuant to paragraph (2).Housing and Community Development Act of 1992
Pub. L. 102–550 § 1604(a)(1)(A) · 106 Stat. 3672
Substituted · 12 U.S.C. § 3105(e)(6)(A)
Pub. L. 102–550, § 1604(a)(1)(A), substituted “against which—
Source evidence
Code amendment note
Subsec. (e)(6)(A). Pub. L. 102–550, § 1604(a)(1)(A), substituted “against which—“(i) the Board has issued an order under paragraph (1); or “(ii) the Comptroller of the Currency has issued an order under section 3102(i) of this title, or a refusal by such office or subsidiary” for “against which the Board or, in the case of an order issued under section 3102(i) of this title, the Comptroller of the Currency has issued an order under paragraph (1) or a refusal by such office or subsidiary”.
Enacted provision · exact public law section
(A) in subparagraph (A), by striking “against which the Board or, in the case of an order issued under section 4(i), the Comptroller of the Currency has issued an order under paragraph (1) or a refusal by such office or subsidiary” and inserting “against which— “(i) the Board has issued an order under paragraph (1); or “(ii) the Comptroller of the Currency has issued an order under section 4(i), or a refusal by such office or subsidiary”; andHousing and Community Development Act of 1992
Pub. L. 102–550 § 1604(a)(1)(B) · 106 Stat. 3672
Substituted · 12 U.S.C. § 3105(e)(6)(B)
Pub. L. 102–550, § 1604(a)(1)(B), substituted “order referred to in subparagraph (A)” for “order issued under paragraph (1)”
Source evidence
Code amendment note
Subsec. (e)(6)(B). Pub. L. 102–550, § 1604(a)(1)(B), substituted “order referred to in subparagraph (A)” for “order issued under paragraph (1)”.Enacted provision · exact public law section
(B) in subparagraph (B), by striking “order issued under paragraph (1)” and inserting “order referred to in subparagraph (A)”.Housing and Community Development Act of 1992
Pub. L. 102–550 § 1604(a)(2) · 106 Stat. 3672
Substituted · 12 U.S.C. § 3105(e)(7)
Pub. L. 102–550, § 1604(a)(2), substituted “public” for “publc”
Source evidence
Code amendment note
Subsec. (e)(7). Pub. L. 102–550, § 1604(a)(2), substituted “public” for “publc”.Enacted provision · exact public law section
(2) Section 7(e)(7) of the International Banking Act of 1978 (as added by section 202(a) of the Federal Deposit Insurance 12 USC 3105. Corporation Improvement Act of 1991) is amended by striking “pubic” and inserting “public”.AnnunzioWylie Anti-Money Laundering Act
Pub. L. 102–550 § 1507 · 106 Stat. 3672
Added · 12 U.S.C. § 3105(i)
Pub. L. 102–550, § 1507, added subsec. (i)
Source evidence
Code amendment note
Subsec. (i). Pub. L. 102–550, § 1507, added subsec. (i).Enacted provision · exact public law section
SEC. 1507. RESTRICTING STATE BRANCHES AND AGENCIES OF FOREIGN RANKS CONVICTED OF MONEY LAUNDERING OFFENSES. Section 7 of the International Banking Act of 1978 (12 U.S.C, 3105) is amended by inserting after subsection (h) the following new subsection: “(i) Proceedings Related to Conviction for Money Laundering Offenses.— “(1) Notice of intention to issue order.— If the Board finds or receives written notice from the Attorney General that— “(A) any foreign bank which operates a State agency, a State branch which is not an insured branch, or a State commercial lending company subsidiary; “(B) any State agency; “(C) any State branch which is not an insured branch; or “(D) any State commercial lending subsidiary^ has been found guilty of any money laundering offense, the Board shall issue a notice to the agency, branch, or subsidiary of the Board’s intention to commence a termination proceeding under subsection (e). “(2) Definitions.— For purposes of this subsection— “(A) Insured branch.— The term ‘insured branch’ has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act. “(B) Money laundering offense defined.— The term ‘money laundering offense’ means any criminal offense under section 1956 or 1957 of title 18, United States Code, or under section 5322 of title 31, United States Code.”.Housing and Community Development Act of 1992
Pub. L. 102–550 § 1604(a)(12) · 106 Stat. 3672
Changed · 12 U.S.C. § 3105(j)
Pub. L. 102–550, § 1604(a)(12), made technical amendment to directory language of Pub. L. 102–242, § 214(b). See 1991 Amendment note below
Source evidence
Code amendment note
Subsec. (j). Pub. L. 102–550, § 1604(a)(12), made technical amendment to directory language of Pub. L. 102–242, § 214(b). See 1991 Amendment note below.Enacted provision · exact public law section
(12) Section 214(b) of the Federal Deposit Insurance Corporation Improvement Act of 1991 is amended by inserting 12 USC 3105. closing quotation marks and a 2d period at the end.Housing and Community Development Act of 1992
Pub. L. 102–550 § 1604(a)(13) · 106 Stat. 3672
Substituted · 12 U.S.C. § 3105(j)(1)
Pub. L. 102–550, § 1604(a)(13), substituted “Supervisory Committee” for “Supervisory committee”
Source evidence
Code amendment note
Subsec. (j)(1). Pub. L. 102–550, § 1604(a)(13), substituted “Supervisory Committee” for “Supervisory committee”.Enacted provision · exact public law section
(13) Section 7(j) of the International Banking Act of 1978 (as added by section 214(b) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended 12 USC 3105. by striking “Supervisory committee” and inserting “Supervisory Committee”.Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
Pub. L. 103–328 title I § 107(e)(1) · 108 Stat. 2338
Added · 12 U.S.C. § 3105(k)
Pub. L. 103–328 added subsec. (k)
Source evidence
Code amendment note
Subsec. (k). Pub. L. 103–328 added subsec. (k).Enacted provision · exact public law section
(1) In general.— Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105) is amended by adding at the end the following new subsection: “(k) Management of shell branches.— “(1) Transactions prohibited.— A branch or agency of a foreign bank shall not manage, through an office of the foreign bank which is located outside the United States and is managed or controlled by such branch or agency, any type of activity that a bank organized under the laws of the United States, any State, or the District of Columbia is not permitted to manage at any branch or subsidiary of such bank which is located outside the United States. “(2) Regulations.— Any regulations promulgated to carry out this section— “(A) shall be promulgated in accordance with section 13; and “(B) shall be uniform, to the extent practicable.”.Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(a)(1) · 110 Stat. 3009
Inserted · 12 U.S.C. § 3105(c)
Pub. L. 104–208, § 2214(a)(1), inserted heading
Source evidence
Code amendment note
Subsec. (c). Pub. L. 104–208, § 2214(a)(1), inserted heading.Enacted provision · exact public law section
(1) by striking “(c)” and inserting the following: “(c) Foreign Bank Examinations and Reporting.—”;Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(a)(2) · 110 Stat. 3009
Added · 12 U.S.C. § 3105(c)(1)(B)(iii)
Pub. L. 104–208, § 2214(a)(2), added cl. (iii)
Source evidence
Code amendment note
Subsec. (c)(1)(B)(iii). Pub. L. 104–208, § 2214(a)(2), added cl. (iii).Enacted provision · exact public law section
(2) in paragraph (1)(B), by adding at the end the following new clause: “(iii) Avoidance of duplication.— In exercising its authority under this paragraph, the Board shall take all reasonable measures to reduce burden and avoid unnecessary duplication of examinations.”;Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(a)(3) · 110 Stat. 3009
Added · 12 U.S.C. § 3105(c)(1)(C)
Pub. L. 104–208, § 2214(a)(3), added subpar. (C)
Struck · 12 U.S.C. § 3105(c)(1)(C)
Pub. L. 104–208, § 2214(a)(3), struck out heading and text of former subpar. (C). Text read as follows: “Each branch or agency of a foreign bank shall be examined at least once during each 12-month period (beginning on the date the most recent examination of such branch or agency ended) in an on-site examination.”
Source evidence
Code amendment note
Subsec. (c)(1)(C). Pub. L. 104–208, § 2214(a)(3), added subpar. (C) and struck out heading and text of former subpar. (C). Text read as follows: “Each branch or agency of a foreign bank shall be examined at least once during each 12-month period (beginning on the date the most recent examination of such branch or agency ended) in an on-site examination.”Enacted provision · exact public law section
(3) by striking subparagraph (C) of paragraph (1) and inserting the following: “(C) On-site examination.— Each Federal branch or agency, and each State branch or agency, of a foreign bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor as frequently as would a national bank or a State bank, respectively, by the appropriate Federal banking agency.”; andDepartment of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(a)(4) · 110 Stat. 3009
Inserted · 12 U.S.C. § 3105(c)(1)(D)
Pub. L. 104–208, § 2214(a)(4), inserted “, only to the same extent that fees are collected by the Board for examination of any State member bank” before period at end
Source evidence
Code amendment note
Subsec. (c)(1)(D). Pub. L. 104–208, § 2214(a)(4), inserted “, only to the same extent that fees are collected by the Board for examination of any State member bank” before period at end.Enacted provision · exact public law section
(4) in paragraph (1)(D), by inserting before the period at the end the following: “, only to the same extent that fees are collected by the Board for examination of any State member bank”.Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(b)(1) · 110 Stat. 3009
Substituted · 12 U.S.C. § 3105(d)(2)
Pub. L. 104–208, § 2214(b)(1), substituted “Except as provided in paragraph (6), the Board” for “The Board”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 104–208, § 2214(b)(1), substituted “Except as provided in paragraph (6), the Board” for “The Board”.Enacted provision · exact public law section
(1) in paragraph (2), by striking “The Board” and inserting “Except as provided in paragraph (6), the Board”;Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(b)(2) · 110 Stat. 3009
Substituted · 12 U.S.C. § 3105(d)(5)
Pub. L. 104–208, § 2214(b)(2), substituted “The Board” for “Consistent with the standards for approval in paragraph (2), the Board”
Source evidence
Code amendment note
Subsec. (d)(5). Pub. L. 104–208, § 2214(b)(2), substituted “The Board” for “Consistent with the standards for approval in paragraph (2), the Board”.Enacted provision · exact public law section
(2) in paragraph (5), by striking “Consistent with the standards for approval in paragraph (2), the”; and inserting “The”; andDepartment of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(b)(3) · 110 Stat. 3009
Added · 12 U.S.C. § 3105(d)(6); 12 U.S.C. § 3105(d)(7)
Pub. L. 104–208, § 2214(b)(3), added pars. (6) and (7)
Source evidence
Code amendment note
Subsec. (d)(6), (7). Pub. L. 104–208, § 2214(b)(3), added pars. (6) and (7).Enacted provision · exact public law section
(3) by adding at the end the following new paragraphs: “(6) Exception.— “(A) In general.— If the Board is unable to find, under paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless approve an application by such foreign bank under paragraph (1) if— “(i) the appropriate authorities in the home country of the foreign bank are actively working to establish arrangements for the consolidated supervision of such bank; and “(ii) all other factors are consistent with approval. “(B) Other considerations.— In deciding whether to use its discretion under subparagraph (A), the Board shall also consider whether the foreign bank has adopted and implements procedures to combat money laundering. The Board may also take into account whether the home country of the foreign bank is developing a legal regime to address money laundering or is participating in multilateral efforts to combat money laundering. “(C) Additional conditions.— In approving an application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the Currency, as the case may be, may impose such conditions or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources of funding, as are considered appropriate. The Board shall coordinate with the appropriate State bank supervisor or the Comptroller of the Currency, as appropriate, in the implementation of such conditions or restrictions. “(D) Modification of conditions.— Any condition or restriction imposed by the Board in connection with the approval of an application under authority of this paragraph may be modified or withdrawn. “(7) Time period for board action.— “(A) Final action.— The Board shall take final action on any application under paragraph (1) not later than 180 days after receipt of the application, except that the Board may extend for an additional 180 days the period within which to take final action on such application after providing notice of, and the reasons for, the extension to the applicant foreign bank and any appropriate State bank supervisor or the Comptroller of the Currency, as appropriate. “(B) Failure to submit information.— The Board may deny any application if it does not receive information requested from the applicant foreign bank or appropriate authorities in the home country of the foreign bank in sufficient time to permit the Board to evaluate such information adequately within the time periods for final action set forth in subparagraph (A). “(C) Waiver.— A foreign bank may waive the applicability of this paragraph with respect to any application under paragraph (1).”.Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 § 2214(c) · 110 Stat. 3009
Amended · 12 U.S.C. § 3105(e)(1)(A)
Pub. L. 104–208, § 2214(c), designated existing provisions as cl. (i)
Substituted · 12 U.S.C. § 3105(e)(1)(A)
Pub. L. 104–208, § 2214(c), substituted “and” for “or” at end
Added · 12 U.S.C. § 3105(e)(1)(A)
Pub. L. 104–208, § 2214(c), added cl. (ii)
Source evidence
Code amendment note
Subsec. (e)(1)(A). Pub. L. 104–208, § 2214(c), designated existing provisions as cl. (i), substituted “and” for “or” at end, and added cl. (ii).Enacted provision · exact public law section
(c) Termination of Foreign Bank Offices in the United States.— Section 7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C. 3105(e)(1)(A)) is amended— (1) by inserting “(i)” after “(A)”; (2) by striking “or” at the end said inserting “and”; and (3) by adding at the end the following new clause: “(ii) the appropriate authorities in the home country of the foreign bank are not making demonstrable progress in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated basis; or”.Financial Stability Act of 2010
Pub. L. 111–203 § 173(a) · 124 Stat. 1376
Added · 12 U.S.C. § 3105(d)(3)(E)
Pub. L. 111–203, § 173(a), added subpar. (E)
Source evidence
Code amendment note
Subsec. (d)(3)(E). Pub. L. 111–203, § 173(a), added subpar. (E).Enacted provision · exact public law section
(a) Establishment of Foreign Bank Offices in the United States.— Section 7(d)(3) of the International Banking Act of 1978 (12 U.S.C. 3105(d)(3)) is amended— (1) in subparagraph (C), by striking “and” at the end; (2) in subparagraph (D), by striking the period at the end of and inserting “; and”; and (3) by adding at the end the following new subparagraph: “(E) for a foreign bank that presents a risk to the stability of United States financial system, whether the home country of the foreign bank has adopted, or is making demonstrable progress toward adopting, an appropriate system of financial regulation for the financial system of such home country to mitigate such risk.” .Effective date note
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.Financial Stability Act of 2010
Pub. L. 111–203 § 173(b) · 124 Stat. 1376
Added · 12 U.S.C. § 3105(e)(1)(C)
Pub. L. 111–203, § 173(b), added subpar. (C)
Source evidence
Code amendment note
Subsec. (e)(1)(C). Pub. L. 111–203, § 173(b), added subpar. (C).Enacted provision · exact public law section
(b) Termination of Foreign Bank Offices in the United States.— Section 7(e)(1) of the International Banking Act of 1978 (12 U.S.C. 3105(e)(1)) is amended— (1) in subparagraph (A), by striking “or” at the end; (2) in subparagraph (B), by striking the period at the end of and inserting “; or”; and (3) by inserting after subparagraph (B), the following new subparagraph: “(C) for a foreign bank that presents a risk to the stability of the United States financial system, the home country of the foreign bank has not adopted, or made demonstrable progress toward adopting, an appropriate system of financial regulation to mitigate such risk.” .Effective date note
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.
28 of 28 references resolved to an enrolled provision
Editorial Notes
References in Text
Section 371a of this title, referred to in subsec. (a)(1)(A), was repealed by Pub. L. 111–203, title VI, § 627(a)(1), , 124 Stat. 1640.
Section 371b–1 of this title, referred to in subsec. (a)(1)(A), was repealed by Pub. L. 96–221, title V, § 529, , 94 Stat. 168, subject to a savings provision.
Sections 461, 463, 464, 465, and 466 of this title, referred to in subsec. (a)(1)(A), was in the original “section 19 of the Federal Reserve Act.” Provisions of section 19 relating to minimum and maximum reserve ratios are classified to the cited sections. For complete classification of section 19 to the Code, see References in Text note set out under section 461 of this title.
For definition of “this chapter”, referred to in subsecs. (d)(3)(C), (4) and (e)(1), see References in Text note set out under section 3101 of this title.
The Bank Holding Company Act of 1956, referred to in subsecs. (d)(3)(C) and (e)(1)(B)(ii), is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to chapter 17 (§ 1841 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of this title and Tables.
The Federal Deposit Insurance Act, referred to in subsec. (e)(1)(B)(ii), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables.
Codification
Section is comprised of section 7 of Pub. L. 95–369. Subsec. (b) of section 7 of Pub. L. 95–369 enacted section 347d of this title.
Amendments1991–2010 · 5 rounds
2010
Subsec. (d)(3)(E). Pub. L. 111–203, § 173(a), added subpar. (E).
Subsec. (e)(1)(C). Pub. L. 111–203, § 173(b), added subpar. (C).
1996
Subsec. (c). Pub. L. 104–208, § 2214(a)(1), inserted heading.
Subsec. (c)(1)(B)(iii). Pub. L. 104–208, § 2214(a)(2), added cl. (iii).
Subsec. (c)(1)(C). Pub. L. 104–208, § 2214(a)(3), added subpar. (C) and struck out heading and text of former subpar. (C). Text read as follows: “Each branch or agency of a foreign bank shall be examined at least once during each 12-month period (beginning on the date the most recent examination of such branch or agency ended) in an on-site examination.”
Subsec. (c)(1)(D). Pub. L. 104–208, § 2214(a)(4), inserted “, only to the same extent that fees are collected by the Board for examination of any State member bank” before period at end.
Subsec. (d)(2). Pub. L. 104–208, § 2214(b)(1), substituted “Except as provided in paragraph (6), the Board” for “The Board”.
Subsec. (d)(5). Pub. L. 104–208, § 2214(b)(2), substituted “The Board” for “Consistent with the standards for approval in paragraph (2), the Board”.
Subsec. (d)(6), (7). Pub. L. 104–208, § 2214(b)(3), added pars. (6) and (7).
Subsec. (e)(1)(A). Pub. L. 104–208, § 2214(c), designated existing provisions as cl. (i), substituted “and” for “or” at end, and added cl. (ii).
1994
Subsec. (k). Pub. L. 103–328 added subsec. (k).
1992
Subsec. (e)(6)(A). Pub. L. 102–550, § 1604(a)(1)(A), substituted “against which—
“(i) the Board has issued an order under paragraph (1); or
“(ii) the Comptroller of the Currency has issued an order under section 3102(i) of this title,
or a refusal by such office or subsidiary” for “against which the Board or, in the case of an order issued under section 3102(i) of this title, the Comptroller of the Currency has issued an order under paragraph (1) or a refusal by such office or subsidiary”.
Subsec. (e)(6)(B). Pub. L. 102–550, § 1604(a)(1)(B), substituted “order referred to in subparagraph (A)” for “order issued under paragraph (1)”.
Subsec. (e)(7). Pub. L. 102–550, § 1604(a)(2), substituted “public” for “publc”.
Subsec. (i). Pub. L. 102–550, § 1507, added subsec. (i).
Subsec. (j). Pub. L. 102–550, § 1604(a)(12), made technical amendment to directory language of Pub. L. 102–242, § 214(b). See 1991 Amendment note below.
Subsec. (j)(1). Pub. L. 102–550, § 1604(a)(13), substituted “Supervisory Committee” for “Supervisory committee”.
1991
Subsec. (c). Pub. L. 102–242, § 203(a), added par. (1), inserted heading for par. (2), and struck out former par. (1) which read as follows: “The Board may make examinations of each branch or agency of a foreign bank, and of each commercial lending company or bank controlled by one or more foreign banks or by one or more foreign companies that control a foreign bank, the cost of which shall be assessed against and paid by such foreign bank or company, as the case may be. The Board shall, insofar as possible, use the reports of examinations made by the Comptroller, the Federal Deposit Insurance Corporation, or the appropriate State bank supervisory authority for the purposes of this subsection.”
Subsecs. (d) to (h). Pub. L. 102–242, § 202(a), added subsecs. (d) to (h) and struck out former subsec. (d) which read as follows: “On or before two years after , the Board after consultation with the appropriate State bank supervisory authorities shall report to the Committee on Banking, Finance and Urban Affairs of the United States House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the United States Senate its recommendations with respect to the implementation of this chapter, including any recommended requirements such as limitations on loans to affiliates or capital adequacy requirements which should be imposed on foreign banks to carry out the purposes of this chapter. Not later than one hundred and eighty days after , the Board shall report to such Committees the steps which have been taken to consult and cooperate with State bank supervisory authorities as required by subsection (a)(1)(B) of this section.”
Subsec. (j). Pub. L. 102–242, § 214(b), as amended by Pub. L. 102–550, § 1604(a)(12), added subsec. (j).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, .
Effective Date of 2010 Amendment
Amendment by Pub. L. 111–203 effective 1 day after , except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.
Effective Date of 1994 Amendment
Pub. L. 103–328, title I, § 107(e)(2), , 108 Stat. 2361, provided that: “The amendment made by paragraph (1) [amending this section] shall become effective at the end of the 180-day period beginning on the date of enactment of this Act [].”
Effective Date of 1992 Amendment
Amendment by section 1604(a)(1), (2), (12), (13) of Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of , see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title.
Moratorium on Examination Fees Under This Chapter
Pub. L. 103–328, title I, § 115(a), , 108 Stat. 2368, provided that: “Section 7(c)(1)(D) of the International Banking Act of 1978 [12 U.S.C. 3105(c)(1)(D)] shall not apply with respect to any examination under section 7(c)(1)(A) of such Act which begins before or during the 3-year period beginning on .”
Credits
1978–2010 · 6 acts
- 1978Pub. L. 95–369, § 7, , 92 Stat. 620
- 1991Pub. L. 102–242, title II, §§ 202(a), 203(a), 214(b), , 105 Stat. 2286, 2291, 2304
- 1992Pub. L. 102–550, title XV, § 1507, title XVI, § 1604(a)(1), (2), (12), (13), , 106 Stat. 4056, 4081–4083
- 1994Pub. L. 103–328, title I, § 107(e)(1), , 108 Stat. 2360
- 1996Pub. L. 104–208, div. A, title II, § 2214, , 110 Stat. 3009–411
- 2010Pub. L. 111–203, title I, § 173(a), (b), , 124 Stat. 1440.
Show as published
(Pub. L. 95–369, § 7, , 92 Stat. 620; Pub. L. 102–242, title II, §§ 202(a), 203(a), 214(b), , 105 Stat. 2286, 2291, 2304; Pub. L. 102–550, title XV, § 1507, title XVI, § 1604(a)(1), (2), (12), (13), , 106 Stat. 4056, 4081–4083; Pub. L. 103–328, title I, § 107(e)(1), , 108 Stat. 2360; Pub. L. 104–208, div. A, title II, § 2214, , 110 Stat. 3009–411; Pub. L. 111–203, title I, § 173(a), (b), , 124 Stat. 1440.)