Federal Reserve System: International Banking Operations
 
November 13, 2001
 

Regulations Governing International Banking Operations. The Federal Reserve System has amended sections of the regulations governing international banking operations. The amendments streamline foreign branching procedures for U.S. banking organizations and for foreign banks seeking to expand their operations in the U.S., authorize expanded activities in foreign branches of U.S. banks, and implement recent statutory changes authorizing a bank to invest up to 20 percent of capital and surplus in Edge corporations. Changes also have been made to the provisions governing permissible foreign activities of U.S. banking organizations, including securities activities, and investments by U.S. banking organizations under the general consent procedures.

Regulations Relating to International Lending. The Federal Reserve System is also seeking public comment on a proposal to amend its regulations relating to international lending by simplifying the discussion concerning the accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). Comments should be submitted on or before December 1, 2001. For further information contact: Michael G. Martinson, (202-452-3640), or Ann Misback, (202-452-3788) at the Legal Division of the Federal Reserve System. To see a list of trade lawyers, click here.