§ 3105.
(a)
Bank reserves
(1)
(A)
Except as provided in paragraph (2) of this subsection, sections 371a,
(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.
(d)
Establishment of foreign bank offices in United States
(1)
Prior approval required
(2)
Required standards for approval
Except as provided in paragraph (6), 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 chapter, the Bank Holding Company Act of 1956 [
12 U.S.C. 1841 et seq.], and other applicable Federal law;
(D)
whether the foreign bank and the United States affiliates of the bank are in compliance with applicable United States law; and
(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.
(5)
Establishment of conditions
(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.
(C)
Additional conditions
(D)
Modification of conditions
(7)
Time period for Board action
(B)
Failure to submit information
(e)
Termination of foreign bank offices in 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)
(i)
the foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and
(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;
(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 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
(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.
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.
(2)
Discretion to deny hearing
(3)
Effective date of termination order
(4)
Compliance with State and Federal law
(5)
Recommendation to agency for termination of a Federal branch or agency
(6)
Enforcement of orders
(A)
In general
In the case of contumacy of any office or subsidiary of the foreign bank against which—
(i)
the Board has issued an order under paragraph (1); or
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.
(7)
Criteria relating to foreign supervision
(h)
Limitations on powers of State branches and agencies
(1)
In general
After the end of the 1-year period beginning on December 19, 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
(3)
Other authority not affected
(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;
(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—
(B)
Money laundering offense defined
(j)
Study on equivalence of foreign bank capital
Not later than 180 days after December 19, 1991, 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 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).
([Pub. L. 95–369, § 7], Sept. 17, 1978, [92 Stat. 620]; [Pub. L. 102–242, title II], §§ 202(a), 203(a), 214(b), Dec. 19, 1991, [105 Stat. 2286], 2291, 2304; [Pub. L. 102–550, title XV, § 1507], title XVI, § 1604(a)(1), (2), (12), (13), Oct. 28, 1992, [106 Stat. 4056], 4081–4083; [Pub. L. 103–328, title I, § 107(e)(1)], Sept. 29, 1994, [108 Stat. 2360]; [Pub. L. 104–208, div. A, title II, § 2214], Sept. 30, 1996, [110 Stat. 3009–411]; [Pub. L. 111–203, title I, § 173(a)], (b), July 21, 2010, [124 Stat. 1440].)