NR 2000-91
		FOR IMMEDIATE RELEASE			
		Contact:  Dean DeBuck (202) 874-5770
		November 30, 2000				    

OCC Proposes Operating Subsidiaries
For Federal Branches And Agencies of Foreign Banks

WASHINGTON -- The Office of the Comptroller of the Currency (OCC) 
is proposing a new rule that would permit a U.S. Federal branch 
or agency of a foreign bank to establish an operating subsidiary.  

The basis for the proposed rule is the International Banking Act 
of 1978 which applies national treatment to the regulation of 
foreign bank activities in the United States.  National treatment 
promotes competitive equality between the U.S. operations of 
foreign banks and national banks.  Accordingly, this proposal 
provides that a U.S. Federal branch or agency may establish an 
operating subsidiary to the same extent as a national bank.

The procedures for a U.S. Federal branch or agency to establish 
an operating subsidiary mirror the procedures that apply to 
national banks with certain modifications to reflect differences 
in the capital measures and managerial standards that apply to 
federal branches and agencies.  These modifications address the 
definition of "well capitalized" and "well managed" that serve as 
procedural criteria for the establishment of operating 
subsidiaries.

Comments are due 60 days after publication in the Federal 
Register. 

                                                                  
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The OCC charters, regulates and examines approximately 2,300 national banks and 
56 federal branches of foreign banks in the U.S., accounting for more than 56 
percent of the nation’s 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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