Orders issued under International Banking Act - Legal Developments - Artesia Banking Corporation S.A

Federal Reserve Bulletin, May, 2002 by Robert deV. Frierson

(1.) All financial data as of September 30, 2001.

(2.) In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors:

(i) Ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide;

(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports, or otherwise;

(iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;

(iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis;

(v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.

(3.) See Dexia Project and Public Finance International Bank, 86 Federal Reserve Bulletin 289 (2000); KBC Bank, N.V., 85 Federal Reserve Bulletin 832 (1999); Credit Communal de Belgique, 82 Federal Reserve Bulletin 104 (1996).

(4.) Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel, pursuant to authority delegated by the Board.

(5.) The authority to approve the establishment of the proposed branch parallels the continuing authority of the State of New York to license offices of a foreign bank. The approval of this application does not supplant the authority of the State of New York, or its agent, the New York State Banking Department ("Department"), to license the proposed office of Bank in accordance with any terms or conditions that the Department may impose.

ROBERT DEV. FRIERSON
Deputy Secretaru of the Board