Revision and interpretation of Regulation K. (Announcements).

The Federal Reserve Board on January 6, 2003, approved revisions to Subpart D of Regulation K, governing international banking operations.

The final rule reduces the regulatory burden on banking institutions engaged in international lending by simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP).

The final rule will become effective thirty days after publication in the Federal Register, which is expected shortly.

The Federal Reserve Board on February 7, 2003, issued an interpretation concerning securities underwriting by banking organizations that are subject to the Bank Holding Company Act.

The interpretation clarifies that a banking organization that wishes to engage in underwriting securities that are to be distributed in the United States must be either a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act.