Foreign Bank Supervision Enhancement Act

(redirected from FBSEA)
Also found in: Acronyms.

Foreign Bank Supervision Enhancement Act

Legislation in the United States, passed in 1991, that gave the Federal Reserve the power to authorize (or not) foreign banks to operate in the U.S. This applied both to future foreign banks and those already in operation when the Act was passed.
References in periodicals archive ?
While there has been a great amount of regulatory rigor impressed upon Chinese banks, it still remains to be seen whether or not the reforms really amount to "comprehensive supervision or regulation on a consolidated basis" as mandated by the FBSEA.
It also implemented in Regulation K provisions of the FBSEA that permit disclosure of certain information to foreign supervisors and establish limits on loans to a single borrower by state branches and agencies.
The FBSEA imposes the following two mandatory standards for the establishment by a foreign bank of a branch, agency, or commercial lending company subsidiary:
15) In the Board's view, the mandatory language of the FBSEA does not permit this flexibility with respect to applications to establish branches, agencies, or commercial lending companies.
The FBSEA also contains other standards that the Board may consider in determining whether to approve any U.
Under the FBSEA, the Board has for the first time the authority to approve establishment of and examine such offices.
In the Board's view, the FBSEA requires that all direct U.
The legislative history of the FBSEA states that a representative office may not conduct "any banking activities, including deposit-taking, securities trading, foreign exchange dealing, and other similar activities.
The FBSEA reflects this critical distinction between banking offices and representative ofrices by imposing a lower standard for the approval of the establishment of representative offices than for the approval of branches and agencies that are permitted to conduct a banking business.
The Board has attempted to resolve these issues in a manner that is consistent with the letter and purpose of the FBSEA.
Of course, matters addressed in the FBSEA or in the Board's rule and not in the state or OCC appfication will need to be handled separately.