Printer Friendly

Final rule on regulation K regarding international banking. (Announcements).

The Federal Reserve Board approved on October 17, 2001, comprehensive revisions to Regulation K (International Banking Operations) expanding permissible activities abroad for U.S. banking organizations and reducing associated regulatory burdens.

The final rule also reduces regulatory burden on foreign banks operating in the United States by streamlining the application and notice processes.

The final rule reflects public comments received, enactment of the Gramm-Leach-Bliley Act, and changes to the bank regulatory environment since the Board issued proposed revisions to Regulation K in December 1997.

The final rule does the following:

* Streamlines foreign branching procedures for U.S. banking organizations

* Authorizes expanded activities in foreign branches of U.S. banks

* Implements recent statutory changes authorizing a bank to invest up to 20 percent of capital and surplus in Edge corporations

* Expands permissible foreign activities of U.S. banking organizations, including securities activities, and investments by U.S. banking organizations under the general consent procedures

* Streamlines the application procedures applicable to foreign banks seeking to expand operations in the United States

* Liberalizes provisions regarding the qualification of foreign banking organizations for exemptions from the nonbanking prohibitions of section 4 of the Bank Holding Company Act

* Implements provisions of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 that affect foreign banks

* Includes other changes to eliminate unnecessary regulatory burden and to streamline and modernize Regulation K.

The final rule will become effective on or about November 20, 2001, within thirty days of publication in the Federal Register.
COPYRIGHT 2001 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Federal Reserve Bulletin
Article Type:Brief Article
Geographic Code:1USA
Date:Dec 1, 2001
Previous Article:Federal open market committee directive and discount rate decrease. (Announcements).
Next Article:Annual adjustments for reserve requirements and deposit reporting. (Announcements).

Related Articles
The Foreign Bank Supervision Enhancement Act of 1991.
Statement to the Congress.
Statement by Richard A. Small, Assistant Director, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System,...
Entity classification simplification not that simple.
Was it something we said? The government's defensive reply to TEI's amicus brief in Mead strikes a nerve.
Winter activities confirm institute's expertise as TEI slaloms way to center platform with golden liaison meetings, amicus brief. (TEI's Own Olympic...
Sale of principal residence due to unforeseen circumstances. (IRS News).
Publication of Revised Capital Framework and U.S. implementation plans.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |