Recordkeeping and supervision of foreign activities of insured state nonmember banks.

CFR · 2024-01-01 · US · Title 12

(a) Records, controls and reports. A bank with any foreign branch, any investment in a foreign organization of 20 percent or more of the organization's voting equity interests, or control of a foreign organization must maintain a system of records, controls and reports that, at minimum, provide for the following: (1) Risk assets. To permit assessment of exposure to loss, information furnished or available to the main office should be sufficient to permit periodic and systematic appraisals of the quality of risk assets, including loans and other extensions of credit. Coverage should extend to a substantial proportion of the risk assets in the branch or foreign organization, and include the status of all large credit lines and of credits to customers also borrowing from other offices or affiliates of the bank. Appropriate information on risk assets may include: (i) A recent financial statement of the borrower or obligee and current information on the borrower's or obligee's financial condition; (ii) Terms, conditions, and collateral; (iii) Data on any guarantors; (iv) Payment history; and (v) Status of corrective measures employed. (2) (3) (4) (i) Verification and identification of entries on financial statements; (ii) Income and expense accounts, including descriptions of significant chargeoffs and recoveries; (iii) Operations and dual-control procedures and other internal controls; (iv) Conformance to head office guidelines on loans, deposits, foreign exchange activities, acc

official document · source cfr-2024 · id 12:§ 347.116