Permissible activities and investments of foreign branches of member banks.

CFR · 2024-01-01 · US · Title 12

(a) (1) (2) (A) The national government of the country where the branch is located and any political subdivision of that country; (B) An agency or instrumentality of the national government of the country where the branch is located where such obligations are supported by the taxing authority, guarantee, or full faith and credit of that government; (C) The national government or political subdivision of any country, where such obligations are rated investment grade; and (D) An agency or instrumentality of any national government where such obligations are rated investment grade and are supported by the taxing authority, guarantee or full faith and credit of that government. (ii) No member bank, under authority of this paragraph (a)(2), may hold, or be under commitment with respect to, such obligations for its own account in relation to any one country in an amount exceeding the greater of: (A) 10 percent of its tier 1 capital; or (B) 10 percent of the total deposits of the bank's branches in that country on the preceding year-end call report date (or the date of acquisition of the branch, in the case of a branch that has not been so reported); (3) (A) The securities of the central bank, clearinghouses, governmental entities other than those authorized under paragraph (a)(2) of this section, and government-sponsored development banks of the country where the foreign branch is located; (B) Other debt securities eligible to meet local reserve or similar requirements; and (C) Sha

official document · source cfr-2024 · id 12:§ 211.4