Us Activities of Foreign Banking Organizations

The International Banking Act of 1978 (IBA) provided for federal regulation of the US opera­tions of foreign banks and granted important new responsibilities to the Federal Reserve for the supervision and regulation of such operations. Enactment of this _____ followed rapid growth in the activities of foreign banks in the United States and an increase in their competitive _____ upon domestic markets.

The IBA created a federal regulatory and supervisory structure for the US branches and agencies of foreign _____, similar to that applicable to US banks. This policy of "national treatment" promotes competitive equality between domestic and foreign banking _____ in the United States by giving foreign banks operating in this country the same and subjecting them to the same restrictions and obligations that _____ to US banks. As part of the im­plementation of national treatment, the IBA limited expansion of interstate deposit-taking and domestic non-banking _____ of foreign banks, provided the option of federal licensing for agencies and branches of foreign banks, and required FDIC insur­ance for branches that _____ in retail deposit-taking.

At the federal level, the IBA apportioned primary supervisory responsibility for US _____ and agen­cies of foreign banks among the three federal banking agencies, according to the type of license and whether the banking office has deposit insurance. In addition, the Federal Reserve was given broad authority for the supervision of all federal and state-licensed branches and agencies of foreign banks _______ in the United States. In fulfilling this responsibility, the Federal Reserve must assess the impact and condition of foreign banks operating across state lines. To carry out its ____ , the Federal Reserve has statutory authority to examine the assets and liabilities of all branches and agencies, but it generally re­lies upon examinations that state and other federal banking authorities _______­­­­­­______. Under the Bank Holding Company Act and the International Banking Act, the Federal Reserve also has responsibility to approve, review, and monitor the US non-banking activities of foreign banking or­ganizations.

Words you may need:

	Англійський варіант	Російський варіант	Український варіант
1	enactment	введение закона в силу	введення закону в силу
2	applicable	применимый	застосовний
3	"national treatment"	национальный режим	національний режим
4	(retail) deposit-taking	прием вкладов от населения	прийом внесків від населення
5	option	право выбора	право вибору
6	apportion	распределять	розподіляти
7	statutory authority	право, предоставленное законом; власть, предоставленная законом	право, надане законом; влада, надана законом
8	assets and liabilities	активы и пассивы	активи і пасиви

DISCUSSION

Ex. 8.

1. Read and discuss the texts.

2. Single out the main facts from the texts and present them in a short essay.

3. Give your answer to the question in the title.

4. Say why the NBU is interested in the development and improvement of the payment system of Ukraine.