How does an election by a foreign bank become effective?

CFR · 2024-01-01 · US · Title 12

(a) (1) The election is ineffective; or (2) The period is extended with the consent of the foreign bank or company making the election. (b) (c) (1) The foreign bank certificant, or any foreign bank that operates a branch or agency or owns or controls a commercial lending company in the United States and is controlled by a foreign bank or company certificant, is not both well capitalized and well managed; (2) Any U.S. insured depository institution subsidiary of the foreign bank or company (except an institution excluded under paragraph (d) of this section) or any U.S. branch of a foreign bank that is insured by the Federal Deposit Insurance Corporation has not achieved at least a rating of “satisfactory record of meeting community needs” under the Community Reinvestment Act at the institution's most recent examination; (3) Any U.S. depository institution subsidiary of the foreign bank or company is not both well capitalized and well managed; or (4) The Board does not have sufficient information to assess whether the foreign bank or company making the election meets the requirements of this subpart. (d) (e) (2) (i) The home country has made significant progress in establishing arrangements for comprehensive supervision on a consolidated basis; and (ii) The foreign bank is in strong financial condition as demonstrated, for example, by capital levels that significantly exceed the minimum levels that are required for a well capitalized determination and strong asset quality.

official document · source cfr-2024 · id 12:§ 225.92