[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR211.13]

[Page 364-365]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 211--INTERNATIONAL BANKING OPERATIONS (REGULATION K)--Table of Contents
 
    Subpart A--International Operations of U.S. Banking Organizations
 
Sec. 211.13  Supervision and reporting.

    (a) Supervision. (1) Foreign branches and subsidiaries. U.S. banking 
organizations conducting international operations under this subpart 
shall supervise and administer their foreign branches and subsidiaries 
in such a manner as to ensure that their operations conform to high 
standards of banking and financial prudence.
    (i) Effective systems of records, controls, and reports shall be 
maintained to keep management informed of their activities and 
condition.
    (ii) Such systems shall provide, in particular, information on risk 
assets, exposure to market risk, liquidity management, operations, 
internal controls, legal and operational risk, and conformance to 
management policies.
    (iii) Reports on risk assets shall be sufficient to permit an 
appraisal of credit quality and assessment of exposure to loss, and, for 
this purpose, provide full information on the condition of material 
borrowers.
    (iv) Reports on operations and controls shall include internal and 
external audits of the branch or subsidiary.
    (2) Joint ventures. Investors shall maintain sufficient information 
with respect to joint ventures to keep informed of their activities and 
condition.
    (i) Such information shall include audits and other reports on 
financial performance, risk exposure, management policies, operations, 
and controls.
    (ii) Complete information shall be maintained on all transactions 
with the joint venture by the investor and its affiliates.
    (3) Availability of reports and information to examiners. The 
reports specified in paragraphs (a)(1) and (2) of this section and any 
other information deemed necessary to determine compliance with U.S. 
banking law shall be made available to examiners of the appropriate bank 
supervisory agencies.
    (b) Examinations. Examiners appointed by the Board shall examine 
each Edge corporation once a year. An Edge or agreement corporation 
shall make available to examiners information sufficient to assess its 
condition and operations and the condition and activities of any 
organization whose shares it holds.
    (c) Reports--(1) Reports of condition. Each Edge or agreement 
corporation shall make reports of condition to the Board at such times 
and in such form as the Board may prescribe. The Board may require that 
statements of condition or other reports be published or made available 
for public inspection.
    (2) Foreign operations. Edge and agreement corporations, member 
banks, and bank holding companies shall file such reports on their 
foreign operations as the Board may require.
    (3) Acquisition or disposition of shares. Member banks, Edge and 
agreement corporations, and bank holding companies shall report, in a 
manner prescribed by the Board, any acquisition or disposition of 
shares.
    (d) Filing and processing procedures--(1) Place of filing. Unless 
otherwise directed by the Board, applications, notices, and reports 
required by this part shall be filed with the Federal Reserve Bank of 
the District in which the parent bank or bank holding company is located 
or, if none, the Reserve Bank of the District in which the applying or 
reporting institution is located. Instructions and forms for 
applications, notices, and reports are available from the Reserve Banks.

[[Page 365]]

    (2) Timing. The Board shall act on an application under this subpart 
within 60 calendar days after the Reserve Bank has received the 
application, unless the Board notifies the investor that the 60-day 
period is being extended and states the reasons for the extension.