Orders issued under International Banking Act

Federal Reserve Bulletin,  Winter, 2004  by Robert DeV. Frierson

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(3.) In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors:

(i) ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide;

(ii) obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports, or otherwise;

(iii) obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;

(iv) receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis;

(v) evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.

(4.) Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel, pursuant to authority delegated by the Board. See 12 C.F.R. 265.7(d)(12).

(5.) The authority to approve the establishment of the proposed representative offices parallels the continuing authority of New York and Texas to license offices of a foreign bank. Approval of this application does not supplant the authority of those states or their agents to license the proposed representative offices of Bank in accordance with any terms or conditions that they may impose.

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