12 U.S.C. § 3104: Insurance of deposits

In implementing this section, the Comptroller and the Federal Deposit Insurance Corporation shall each, by affording equal competitive opportunities to foreign and United States banking organizations in their United States operations, ensure that foreign banking organizations do not receive an unfair competitive advantage over United States banking organizations. No foreign bank may establish or operate a Federal branch which receives deposits of less than an amount equal to the standard maximum deposit insurance amount unless the branch is an insured branch as defined in section 3(s) of the Federal Deposit Insurance Act [ 12 U.S.C. 1813(s) ], or unless the Comptroller determines by order or regulation that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection, taking account of the size and nature of depositors and deposit accounts. After September 17, 1978 , no foreign bank may establish a branch, and after one year following such date no foreign bank may operate a branch, in any State in which the deposits of a bank organized and existing under the laws of that State would be required to be insured, unless the branch is an insured branch as defined in section 3(s) of the Federal Deposit Insurance Act [ 12 U.S.C. 1813(s) ], or unless the branch will not thereafter accept deposits of less than an amount equal to the standard maximum deposit insurance amount, or unless the Federal Deposit Insurance Corporation determines by order or regulation that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection, taking account of the size and nature of depositors and deposit accounts. Notwithstanding the previous paragraph, a branch of a foreign bank in operation on September 17, 1978 , which has applied for Federal deposit insurance pursuant to section 5 of the Federal Deposit Insurance Act [ 12 U.S.C. 1815 ] by September 17, 1979 , and has not had such application denied, may continue to accept domestic retail deposits until January 31, 1980 . establish 1 or more banking subsidiaries in the United States for that purpose; and obtain Federal deposit insurance for any such subsidiary in accordance with the Federal Deposit Insurance Act. Domestic retail deposit accounts with balances of less than an amount equal to the standard maximum deposit insurance amount that require deposit insurance protection may be accepted or maintained in a branch of a foreign bank only if such branch was an insured branch on December 19, 1991 . For purposes of this subsection, the term “foreign bank” does not include any bank organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands the deposits of which are insured by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act [ 12 U.S.C. 1811 et seq.]. For purposes of this section, the term “standard maximum deposit insurance amount” means the amount of the maximum amount of deposit insurance as determined under section 11(a)(1) of the Federal Deposit Insurance Act [ 12 U.S.C. 1821(a)(1) ]. Each Federal banking agency, after consultation with the other Federal banking agencies to assure uniformity, shall revise the regulations adopted by such agency under section 6 of the International Banking Act of 1978 [ 12 U.S.C. 3104 ] to ensure that the regulations are consistent with the objective set forth in section 6(a) of the International Banking Act of 1978. individuals who are not citizens or residents of the United States at the time of the initial deposit; are not citizens of the United States; are residents of the United States; and are employed by a foreign bank, foreign business, foreign government, or recognized international organization; persons to whom the branch or foreign bank has extended credit or provided other nondeposit banking services; foreign businesses and large United States businesses; foreign governmental units and recognized international organizations; and persons who are depositing funds in connection with the issuance of a financial instrument by the branch for the transmission of funds. available under any regulation prescribed pursuant to section 6(d) of the International Banking Act of 1978 [ 12 U.S.C. 3104(d) ] providing for the acceptance of initial deposits of less than $100,000 by an uninsured branch of a foreign bank; and based on a percentage of the average deposits at such branch; In carrying out paragraph (1), each Federal banking agency shall also consider the importance of maintaining and improving the availability of credit to all sectors of the United States economy, including the international trade finance sector of the United State [sic] economy. shall publish final regulations under paragraph (1) in the Federal Register not later than 12 months after the date of enactment of this Act [ Sept. 29, 1994 ]; and may establish reasonable transition rules to facilitate any termination of any deposit-taking activities that were permissible under regulations that were in effect before the date of enactment of this Act. the Comptroller of the Currency with respect to Federal branches of foreign banks; and the Federal Deposit Insurance Corporation with respect to State branches of foreign banks; and the term ‘uninsured branch’ means a branch of a foreign bank that is not an insured branch, as defined in section 3(s)(3) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(s)(3) ).”