FOR IMMEDIATE RELEASE
November 30, 2000
Contact: Dean DeBuck
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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