Parallel-Owned Banking Organizations
April 30, 2002
Circular No. 11437

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision announce their issuing of guidance that reviews the risks of parallel-owned banking organizations. A parallel-owned banking organization consists of a U.S. depository institution and a foreign bank that are both controlled directly or indirectly by one person or group of persons who are closely associated in their business dealings or act in concert.

The joint agency statement (pdf - 37kb) is attached.

Questions on this matter may be directed, at this bank to Betsy B. White, Senior Vice President, Banking Applications.