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Contact: Dean DeBuck | December 19, 2003 | (202) 874-5770 |
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WASHINGTON -- The Office of the Comptroller of the Currency
(OCC) today published a final rule to streamline and simplify regulations that
apply to federal branches and agencies of foreign banks. The final rule reduces unnecessary
regulatory burdens on national banks engaging in international activities,
consistent with safety and soundness.
The OCC is adopting these revisions as part of its commitment to review
and update its rules regularly.
The changes further conform the treatment of federal
branches and agencies to that of national banks consistent with the national
treatment principles of the International Banking Act of 1978. The final rule
streamlines regulatory processes in the following ways:
- It
eliminates the requirement to file an application with the OCC when a
foreign bank pares back its U.S. activities by converting a federal branch
into a limited federal branch or a federal agency.
- It
eliminates the need for foreign banks to apply for a new license when expanding
U.S. activities and establishing certain additional federal branches or
agencies after the opening of the initial U.S. office. Approval requirements may still apply
for these expanded activities, but establishing certain additional federal
offices will not require applying for a new license from the OCC.
- It
allows a foreign bank with federal branches or agencies in more than one
state to consolidate its required capital equivalency deposits (CED) into
one account and clarifies which U.S. banks are eligible to hold these
consolidated deposits.
- It
establishes in regulation the OCCs current policy of excluding
liabilities of an international banking facility when calculating the
amount of a federal branchs CED.
- It
permits a qualifying federal branch to make certain non-controlling equity
investments in an enterprise in the same manner as a national bank.
- It
expands the list of notices and applications that are eligible for
expedited processing.
The final rule also eases certain OCC filing requirements on
internationally active national banks.
The final rule is available at www.occ.treas.gov.
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The OCC charters, regulates and examines approximately
2,100 national banks and 52 federal branches of foreign banks in the U.S.,
accounting for more than 55 percent of the nations banking assets. Its
mission is to ensure a safe and sound and competitive national banking system
that supports the citizens, communities and economy of the United States.
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