Eligibility of Small U.S. Branches and Agencies Of Foreign Banks for 18-Month Examination Cycle
September 1, 1998
Circular No. 11089

Interim Rule with Request for Comments

To All State-Licensed Branches and Agencies of Foreign Banks in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, has issued an interim rule and requested public comment on a proposal to expand the examination frequency cycle for certain U.S. branches and agencies of foreign banks.

The interim rule is effective August 28, 1998.

Comment is requested by October 27, 1998.

Implementation of this ruling will make U.S. branches and agencies of foreign banks with total assets of $250 million or less eligible for an 18-month examination cycle rather than a 12-month cycle if they meet the qualifying criteria set out in the interim rule.

The ruling will implement provisions of section 2214 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996.

A copy of Part V of the Federal Register of August 28, 1998 containing the joint interim rule is available as a file (pdf - 40kb). Comments should be submitted by October 27, 1998 to the agencies specified in the notice.

Also available is a copy of a Federal Reserve Board staff letter (SR 98-22) concerning the Federal Reserve's administration of the interim rule.