95th Congress > House > Vote 870
Description: TO PASS H.R. 10899, THE BILL PROVIDING FOR FEDERAL REGULATION OF FOREIGN BANKS LOCATED IN THE UNITED STATES.
Bill summary: (Measure passed Senate, amended)
International Banking Act - Permits the Comptroller of the Currency, in his discretion, to waive specified citizenship requirements with respect to directors of associations which are subsidiaries or affiliates of foreign banks, in the case of not more than a minority of the total number of directors.
Amends the Federal Reserve Act to require the Federal Reserve Board to eliminate or modify certain regulatory restrictions which: (1) discriminate against
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foreign-owned banking institutions; (2) disadvantage or unnecessarily restrict federally chartered corporations which engage in international or foreign banking and other financial operations (Edge Act corporations) in competing with foreign owned banking institutions in the United States or abroad; or (3) impede the attainment of specified Congressional purposes. Requires the Board to: (1) issue such revised regulations within 150 days after enactment; (2) adopt final regulations effective not later than 120 days of issuance; and (3) review and revise any such regulations at least once every five years.
Eliminates the requirement that all directors of Edge Act corporations be United States citizens.
Eliminates the prohibition against Edge Act corporations having liabilities outstanding at any one time upon their debentures, bonds, or promissory notes in excess of ten times their paid-in capital and surplus.
Eliminates a mandatory ten percent reserve requirement imposed on such corporation deposits. Provides that such corporations be subject to the same requirements as member banks.
Permits foreign-owned banking institutions to acquire majority stock control of such corporations, with the prior approval of, and subject to regulation by, the Board.
Requires the Board to report to Congress within 270 days its recommendations on permitting Edge Act corporations or similar State corporations to become members of Federal Reserve Banks.
Requires the Board in its annual report to Congress to include its assessment of the effects of this Act on the capitalization and activities of Edge Act corporations or similar State corporations, and on commercial banks and the banking system.
Permits foreign banks to establish and operate Federal branches in any State in which it is not prohibited for a foreign bank to establish such a branch upon receipt of approval from the Comptroller of the Currency. Sets forth considerations which the Comptroller must take into account in determining whether to permit foreign banks to operate under this Act.
Permits a foreign bank, with the approval of the Comptroller, to convert any branch operated pursuant to State law into a Federal branch and to establish and operate additional branches in the State in which it is operating.
Terminates the authority to operate a Federal branch when (1) the parent bank voluntarily relinquishes it; (2) the parent bank is dissolved; (3) the Comptroller has reasonable cause to believe that a foreign bank has not complied with the provisions of this Act and revokes the authority to operate a Federal branch; or (4) a conservator is appointed for such foreign bank.
Prevents a foreign bank from operating a Federal branch outside its home state unless approval has been given by the appropriate authority.
Amends the Federal Deposit Insurance Act to prohibit any foreign bank operated Federal branch which receives deposits of less than $100,000 from accepting deposits of United States citizens, residents, or businesses whose principal place of business is in the United States unless the branch maintains a surety bond or pledge of assets with the Federal Deposit Insurance Corporation or unless the Comptroller determines that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection.
Sets forth the assets which foreign banks are required to keep or deposit before the Federal branch may accept deposits of United States residents or businesses.
Imposes upon such Federal branches and agencies the reporting, reserve, and examination requirements applicable to member banks.
Authorizes the Federal Reserve Board to impose on any branch or agency or commercial lending company controlled by one or more foreign banks any reserve requirement the Board has authority to impose on Federal branches and agencies.
Authorizes deposit, discount, and borrowing privileges on the part of branches, agencies, and commercial lending companies maintaining such reserves.
Authorizes the Board to require submission of examination reports on foreign bank branches, agencies, and commercial lending companies, by State banking authorities. Requires the Board to report to the appropriate committees of Congress its recommendations with respect to the implementation of this Act, within two years of enactment. Directs the Board to report to such committees the steps which have been taken to consult and cooperate with State bank supervisory authorities within 180 days after enactment of this Act.
Prohibits foreign banks from retaining interests in non-banking companies or from participating in non-banking activities with specified exceptions.
Directs the Secretary of the Treasury, in conjunction with the Secretary of State, the Board, the Comptroller, and the Federal Deposit Insurance Corporation (FDIC), to study; (1) the extent to which American banks operating in foreign countries are denied national treatment and (2) the effects of such discrimination on United States exports to such countries. Requires the Secretary of the Treasury to report findings, conclusions, and recommendations from such study to Congress within one year.
Requires each foreign bank that maintains an office other than a branch in a State to register with the Secretary of the Treasury.
Amends the Federal Deposit Insurance Act to empower Federal bank regulatory agencies to issue cease-and desist orders to specified foreign banks or holding companies and their nonbank subsidiaries.
Makes provisions for the enforcement of this Act.
Directs the President, in consultation with the Attorney General, the Secretary of the Treasury, the Board, the Comptroller, and the FDIC, to report to Congress within one year recommendations concerning the applicability of the McFadden Act to the present economic environment, and the effects of any proposed amendment to such Act.
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Bill titles: A bill to provide for Federal regulation of participation by foreign banks in domestic financial markets.
Original source documents: Digest of the Congressional Record vol. 124-47, p. 2575;
Links for more info on the vote: congress.gov
