|
[Main Tabs]
[Table of Contents - 2000]
[Index]
[Previous Page]
[Next Page]
[Search]
2000 - Rules and Regulations
Subpart JInternational Banking
§ 303.180 Scope.
This subpart sets forth procedures for complying with application
requirements relating to the foreign activities of insured state
nonmember banks, U.S. activities of insured branches of foreign banks,
and certain foreign mergers of insured depository institutions.
[Codified to 12 C.F.R.
§ 303.180]
§ 303.181 Definitions.
For the purposes of this subpart, the following additional
definitions apply:
(a) Board of Governors means the Board of Governors of
the Federal Reserve System.
(b) Comptroller means the Office of the Comptroller of
the Currency.
(c) Eligible insured branch. An insured branch will be
treated as an eligible depository institution within the meaning of
§ 303.2(r) if the insured branch:
(1) Received an FDIC-assigned composite ROCA supervisory rating
(which rates risk management, operational controls, compliance, and
asset quality) of 1 or 2 as a result of its most recent federal or
state examination, and the FDIC, Comptroller, or Board of Governors
have not expressed concern about the condition or operations of the
foreign banking organization or the support it offers the branch;
(2) Received a satisfactory or better Community Reinvestment Act
(CRA) rating from its primary federal regulator at its most recent
examination, if the depository institution is subject to examination
under part 345 of this
chapter;
{{4-29-05 p.2068.04}}
(3) Received a compliance rating of 1 or 2 from its primary
federal regulator at its most recent examination;
(4) Is well-capitalized as defined in
subpart B of part 325 of
this chapter; and
(5) Is not subject to a cease and desist order, consent order,
prompt corrective action directive, written agreement, memorandum of
understanding, or other administrative agreement with any U.S. bank
regulatory authority.
(d) Federal branch means a federal branch of a foreign
bank as defined by
§ 347.202 of this
chapter.
(e) Foreign bank means a federal bank as defined in
§ 347.202 of this chapter.
(f) Foreign branch means a foreign branch of an insured
state nonmember bank as defined by § 347.102 of this chapter.
(g) Foreign organization means a foreign organization as
defined by § 347.102 of this chapter.
(h) Insured branch means an insured branch of a foreign
bank as defined by § 347.202 of this chapter.
(i) Noninsured branch means a noninsured branch of a
foreign bank as defined by § 347.202 of this chapter.
(j) State branch means a state branch of a foreign bank
as defined by § 347.202 of this chapter.
[Codified to 12 C.F.R.
§ 303.181]
§ 303.182 Establishing, moving or closing a foreign branch of
an insured state nonmember bank.
(a) Notice procedures for general consent. Notice in the
form of a letter from an eligible depository institution establishing
or relocating a foreign branch pursuant to
§ 347.117(a) of this
chapter must be provided to the appropriate FDIC office no later than
30 days after taking such action. The notice must include the location
of the foreign branch, including a street address, and a statement that
the foreign branch has not been located on a site on the World Heritage
List or on the foreign country's equivalent of the National Register
of Historic Places (National Register), in accordance with section 402
of the National Historic Preservation Act Amendments of 1980 (NHPA
Amendments Act) (16 U.S.C. 470a--2). The FDIC will provide written
acknowledgment of receipt of the notice.
(b) Filing procedures for other branch
establishments--(1) Where to file. An applicant seeking
to establish a foreign branch other than under § 347.117(a) of this
chapter shall submit an application to the appropriate FDIC office.
(2) Content of filing. A complete letter application
must include the following information:
(i) The exact location of the proposed foreign branch, including
the street address, and a statement whether the foreign branch will be
located on a site on the World Heritage List or on the foreign
country's equivalent of the National Register, in accordance with
section 402 of the NHPA Amendments Act;
(ii) Details concerning any involvement in the proposal by an
insider of the applicant, as defined in § 303.2(u) of this part,
including any financial arrangements relating to fees, the acquisition
of property, leasing of property, and construction contracts;
(iii) A brief description of the applicant's business plan with
respect to the foreign branch; and
(iv) A brief description of the proposed activities of the branch
and, to the extent any of the proposed activities are not authorized by
§ 347.115 of this chapter, the applicant's reasons why they should
be approved.
(3) Additional information. The FDIC may request additional
information to complete processing.
(c) Processing--(1) Expedited processing for
eligible depository institutions. An application filed under
§ 347.118(a) of this chapter by an eligible depository institution as
defined in § 303.2(r) of this part seeking to establish a foreign
branch by expedited processing will be acknowledged in writing by the
FDIC and will receive expedited processing, unless the applicant is
notified in writing to the contrary and provided with the basis for
that decision. The FDIC may remove the application from expedited
processing for any of the reasons set
{{4-29-05 p.2068.05}}forth in
§ 303.11(c)(2) of this
part. Absent such removal, an application processed under expedited
processing is deemed approved 45 days after receipt of a substantially
complete application by the FDIC, or on such earlier date authorized by
the FDIC in writing.
(2) Standard processing. For those applications that
are not processed pursuant to the expedited procedures, the FDIC will
provide the applicant with written notification of the final action
when the decision is rendered.
(d) Closing. Notices of branch closing under § 347.121
of this chapter, in the form of a letter including the name, location,
and date of closing of the closed branch, shall be filed with the
appropriate FDIC office no later than 30 days after the branch is
closed.
[Codified to 12 C.F.R. § 303.182]
[Section 303.182 amended at 70 Fed. Reg. 17558, April 6,
2005, effective July 1, 2005]
§ 303.183 Investment by insured state nonmember banks in
foreign organization.
(a) Notice procedures for general consent. Notice in the
form of a letter from an eligible depository institution making direct
or indirect investments in a foreign organization pursuant to
§ 347.117(b) of this chapter shall be provided to the appropriate
FDIC office no later than 30 days after taking such action. The FDIC
will provide written acknowledgment of receipt of the notice.
(b) Filing procedures for other investments--(1)
Where to file. An applicant seeking to make a foreign
investment other than under § 347.117(b) of this chapter shall submit
an application to the appropriate FDIC office.
(2) Content of filing. A complete application shall
include the following information:
(i) Basic information about the terms of the proposed
transaction, the amount of the investment in the foreign organization
and the proportion of its ownership to be acquired;
(ii) Basic information about the foreign organization, its
financial position and income, including any available balance sheet
and income statement for the prior year, or financial projections for a
new foreign organization;
(iii) A listing of all shareholders known to hold ten percent or
more of any class of the foreign organization's stock or other
evidence of ownership, and the amount held by each;
(iv) A brief description of the applicant's business plan with
respect to the foreign organization;
(v) A brief description of any business or activities which the
foreign organization will conduct directly or indirectly in the United
States, and to the extent such activities are not authorized by subpart
A of part 347, the applicant's reasons why they should be approved;
(vi) A brief description of the foreign organization's
activities, and to the extent such activities are not authorized by
subpart A of part 347, the applicant's reasons why they should be
approved; and
(vii) If the applicant seeks approval to engage in underwriting
or dealing activities, a description of the applicant's plans and
procedures to address all relevant risks.
(3) Additional information. The FDIC may request
additional information to complete processing.
(c) Processing--(1) Expedited processing for
eligible depository institutions. An application filed under
§ 347.118(b) of this chapter by an eligible depository institution as
defined in § 303.2(r) of this part seeking to make direct or indirect
investments in a foreign organization will be acknowledged in writing
by the FDIC and will receive expedited processing, unless the applicant
is notified in writing to the contrary and provided with the basis for
that decision. The FDIC may remove the application from expedited
processing for any of the reasons set forth in § 303.11(c)(2) of this
part. Absent such removal, an application processed under expedited
processing is deemed approved 45 days after receipt of a substantially
complete application by the FDIC, or on such earlier date authorized by
the FDIC in writing.
(2) Standard processing. For those applications which
are not processed pursuant to the expedited procedures, the FDIC will
provide the applicant with written notification of the final action
when the decision is rendered.
{{4-29-05 p.2068.06}}
(d) Divestiture. If an insured state nonmember bank
holding 50 percent or more of the voting equity interests of a foreign
organization or otherwise controlling the foreign organization divests
itself of such ownership or control, the insured state nonmember bank
shall file a notice in the form of a letter, including the name,
location, and date of divestiture of the foreign organization, with the
appropriate FDIC office no later than 30 days after the divestiture.
[Codified to 12 C.F.R. § 303.183]
[Section 303.183 amended at 70 Fed. Reg. 17558, April 6,
2005, effective July 1, 2005]
§ 303.184 Moving an insured branch of a foreign bank.
(a) Filing procedures--(1) Where and when to file.
An application by an insured branch of a foreign bank seeking the
FDIC's consent to move from one location to another, as required by
section 18(d)(1) of the FDI Act (12
U.S.C. 1828(d)(1)), shall be submitted in writing to the
appropriate FDIC office on the date the notice required by paragraph
(c) of this section is published, or within 5 days after the date of
the last required publication.
(2) Content of filing. A complete letter application
shall include the following information:
(i) The exact location of the proposed site, including the street
address;
(ii) Details concerning any involvement in the proposal by an
insider of the applicant, as defined in § 303.2(u), including any
financial arrangements relating to fees, the acquisition of property,
leasing of property, and construction contracts;
(iii) A statement of the impact of the proposal on the human
environment, including information on compliance with local zoning laws
and regulations and the effect on traffic patterns, for purposes of
complying with the applicable provisions of the NEPA, and the FDIC
"Statements
of Policy on NEPA" (1 FDIC Law, Regulations, Related Acts
5185; see § 309.4(a) and (b) of this chapter for availability).
(iv) A statement as to whether or not the site is eligible for
inclusion in the National Register of Historic Places for purposes of
complying with the applicable provisions of the NHPA, and the FDIC
"Statement
of Policy on NHPA" (1 FDIC Law, Regulations, Related Acts
5175; see § 309.4(a) and (b) of this chapter for availability),
including documentation of consultation with the State Historic
Preservation Officer, as appropriate.
(v) Comments on any changes in services to be offered, the
community to be served, or any other effect the proposal may have on
the applicant's compliance with the CRA; and
(vi) A copy of the newspaper publication required by paragraph
(c) of this section, as well as the name and address of the newspaper
and the date of the publication.
(3) Comptroller's application. If the applicant is
filing an application with the Comptroller which contains the
information required by paragraph (a)(2) of this section, the applicant
may submit a copy to the FDIC in lieu of a separate application.
(4) Additional information. The FDIC may request
additional information to complete processing.
(b) Processing--(1) Expedited processing for
eligible insured branches. An application filed by an eligible
insured branch as defined in § 303.181(c) of this part will be
acknowledged in writing by the FDIC and will receive expedited
processing if the applicant is proposing to move within the same state,
unless the applicant is notified to the contrary and provided with the
basis for that decision. The FDIC may remove an application from
expedited processing for any of the reasons set forth in
§ 303.11(c)(2) of this
part. Absent such removal, an application processed under expedited
processing will be deemed approved on the latest of the following:
(i) The 21st day after the FDIC's receipt of a substantially
complete application; or
(ii) The 5th day after expiration of the comment period described
in paragraph (c) of this section.
(2) Standard processing. For those applications that
are not processed pursuant to the expedited procedures, the FDIC will
provide the applicant with written notification of the final action as
soon as the decision is rendered.
(c) Publication requirement and comment period--(1)
Newspaper publications. The applicant shall publish a notice
of its proposal to move from one location to another, as described in
§ 303.7(b), in a newspaper of general circulation in the community in
which
{{10-31-07 p.2068.07}}the insured branch is located
prior to its being moved and in the community to which it is to be
moved. The notice shall include the insured branch's current and
proposed addressees.
(2) Public comments. All public comments must be
received by the appropriate regional director within 15 days after the
date of the last newspaper publication required by paragraph (c)(1) of
this section, unless the comment period has been extended or reopened
in accordance with § 303.9(b)(2).
(3) Lobby notices. If the insured branch has a public
lobby, a copy of the newspaper publication shall be posted in the
public lobby for at least 15 days beginning on the date of the
publication required by paragraph (c)(1) of this section.
(d) Other approval criteria. (1) The FDIC may approve an
application under this section if the criteria in paragraphs (d)(1)(i)
through (d)(1)(vi) of this section is satisfied.
(i) The factors set forth in section 6 of the FDI Act (12 U.S.C.
1816) have been considered and favorably resolved;
(ii) The applicant is at least adequately capitalized as defined
in subpart B of part 325
of this chapter;
(iii) Any financial arrangements which have been made in
connection with the proposed relocation and which involve the
applicant's directors, officers, major shareholders, or their
interests are fair and reasonable in comparison to similar arrangements
that could have been made with independent third parties;
(iv) Compliance with the CRA, the NEPA, the NHPA and any
applicable related regulations, including
12 CFR part 345, has been
considered and favorably resolved;
(v) No CRA protest as defined in § 303.2(l) has been filed
which remains unresolved or, where such a protest has been filed and
remains unresolved, the Director or designee concurs that approval is
consistent with the purposes of the CRA and the applicant agrees in
writing to any conditions imposed regarding the CRA; and
(vi) The applicant agrees in writing to comply with any
conditions imposed by the FDIC, other than the standard conditions
defined in § 303.2(dd) which may be imposed without the applicant's
written consent.
(e) Relocation of insured branch from one state to another.
If the foreign bank proposes to relocate an insured state branch
to a state that is outside the state where the branch is presently
located, in addition to meeting the approval criteria contained in
paragraph (d) of this section, the foreign bank must:
(i) Comply with any applicable state laws or regulations of the
states affected by the proposed relocation; and
(ii) Obtain any required regulatory approvals from the
appropriate state licensing authority of the state to which the insured
branch proposes to relocate before relocating the existing branch
operations and surrendering its existing license to the appropriate
state licensing authority of the state from which the branch is
relocating.
[Codified to 12 C.F.R. § 303.184]
[Section 303.184 amended at 70 Fed. Reg. 17559, April 6, 2005,
effective July 1, 2005]
§ 303.185 Merger transactions involving foreign banks or
foreign organizations.
(a) Merger transactions involving an insured branch of a
foreign bank. Merger transactions requiring the FDIC's prior
approval as set forth in
§ 303.62 include any
merger transaction in which the resulting institution is an insured
branch of a foreign bank which is not a federal branch, or any merger
transaction which involves any insured branch and any uninsured
institution. In such cases:
(1) References to an eligible depository institution in subpart D
of this part include an eligible insured branch as defined in
§ 303.181;
(2) The definition of a corporate reorganization in § 303.61(b)
includes a merger transaction between an insured branch and other
branches, agencies, or subsidiaries in the United States of the same
foreign bank; and
(3) For the purposes of § 303.62(b)(1) on interstate mergers, a
merger transaction involving an insured branch is one involving the
acquisition of a branch of an insured bank without the acquisition of
the bank for purposes of section 44 of the FDI Act
(12 U.S.C. 1831u) only when
the merger transaction involves fewer than all the insured branches of
the same foreign bank in the same state.
{{10-31-07 p.2068.08}}
(b) Certain merger transactions with foreign organizations
outside any State. Merger transactions requiring the FDIC's prior
approval as set forth in § 303.62 include any merger transaction in
which an insured depository institution becomes directly liable for
obligations which will, after the merger transaction, be treated as
deposits under section 3(l)(5)(A)(i)--(ii) of the FDI Act
(12 U.S.C.
1813(l)(5)(A)(i)--(ii)), as a result of a merger or
consolidation with a foreign organization or an assumption of
liabilities of a foreign organization.
[Codified to 12 C.F.R.
§ 303.185]
§ 303.186 Exemptions from insurance requirement for a state
branch of a foreign bank.
(a) Filing procedures--(1) Where to file. An
application by a foreign bank for consent to operate as a noninsured
state branch, as permitted by
§ 347.215(b) of this
chapter, shall be submitted in writing to the appropriate FDIC office.
(2) Content of filing. A complete letter application
shall include the following information:
(i) The kinds of deposit activities in which the state branch
proposes to engage;
(ii) The expected source of deposits;
(iii) The manner in which deposits will be solicited;
(iv) How the activity will maintain or improve the availability
of credit to all sectors of the United States economy, including the
international trade finance sector;
(v) That the activity will not give the foreign bank an unfair
competitive advantage over United States banking organizations; and
(vi) A resolution by the applicant's board of directors, or
evidence of approval by senior management if a resolution is not
required pursuant to the applicant's organizational documents,
authorizing the filing of the application.
(3) Additional information. The FDIC may request
additional information to complete processing.
(4) Processing. The FDIC will provide the applicant
with written notification of the final action taken.
[Codified to 12 C.F.R. § 303.186]
[Section 303.186 amended at 70 Fed. Reg. 17559, April 6, 2005,
effective July 1, 2005]
§ 303.187 Approval for an insured state branch of a foreign
bank to conduct activities not permissible for federal branches.
(a) Filing procedures--(1) Where to file. An
application by an insured state branch seeking approval to conduct
activities not permissible for a federal branch, as required by
§ 347.212(a) of this
chapter, shall be submitted in writing to the appropriate FDIC office.
(2) Content of filing. A complete letter application
shall include the following information:
(i) A brief description of the activity, including the manner in
which it will be conducted and an estimate of the expected dollar
volume associated with the activity;
(ii) An analysis of the impact of the proposed activity on the
condition of the United States operations of the foreign bank in
general and of the branch in particular, including a copy of the
feasibility study, management plan, financial projections, business
plan, or similar document concerning the conduct of the activity;
(iii) A resolution by the applicant's board of directors, or
evidence of approval by senior management if a resolution is not
required pursuant to the applicant's organizational documents,
authorizing the filing of the application;
(iv) A statement by the applicant of whether it is in compliance
with sections 347.209 and
347.210 of this chapter;
(v) A statement by the applicant that it has complied with all
requirements of the Board of Governors concerning applications to
conduct the activity in question and the status of each such
application, including a copy of the Board of Governors' disposition
of such application, if applicable; and
(vi) A statement of why the activity will pose no significant
risk to the Deposit Insurance Fund.
{{10-31-07 p.2068.09}}
(3) Board of Governors application. If the application
to the Board of Governors contains the information required by
paragraph (a) of this section, the applicant may submit a copy to the
FDIC in lieu of a separate letter application.
(4) Additional information. The FDIC may request
additional information to complete processing.
(b) Divestiture or cessation--(1) Where to file.
Divestiture plans necessitated by a change in law or other
authority, as required by
§ 347.212(e) of this
chapter, shall be submitted in writing to the appropriate FDIC office.
(2) Content of filing. A complete letter application
shall include the following information:
(i) A detailed description of the manner in which the application
proposes to divest itself of or cease the activity in question; and
(ii) A projected timetable describing how long the divestiture or
cessation is expected to take.
(3) Additional information. The FDIC may request
additional information to complete processing.
[Codified to 12 C.F.R. § 303.187]
[Section 303.187 amended at 70 Fed. Reg. 17559, April 6, 2005,
effective July 1, 2005; 71 Fed. Reg. 20526, April 21,
2006]
§ 303.188--303.199 [Reserved]
[Main Tabs]
[Table of Contents - 2000]
[Index]
[Previous Page]
[Next Page]
[Search]
|