Bankowość · 28/11/1994

Foreign Banks

The FDIC is amending its regulations concerning the permissible activities of state-licensed insured branches of foreign banks. Section 202 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (Improvement Act) provides that after December 19, 1992, a state-licensed insured branch of a foreign bank may not engage in any activity which is not permissible for a federal branch of a foreign bank unless the Board of Governors of the Federal Reserve System (Board) has determined that the activity is consistent with sound banking practice, and the FDIC has determined that the activity would pose no significant risk to the Bank Insurance Fund (BIF). The amendments cover application procedures and divestiture or cessation plans. Foreign banks are required to seek both the FDIC's and the Board's approval for an insured state branch to engage in or continue to engage in an activity which is not permissible for a federal branch of a foreign bank. In the event such an application is denied or the foreign bank elects not to continue the activity, a plan of divestiture or cessation must be submitted and such divestiture or cessation must be completed within one year, or sooner if