International Applications and Prior Notifications Under Subpart B of Regulation K
The FR K-2 comprises a set of applications and notifications for foreign banking organizations seeking to open a branch, agency, or commercial lending company or representative office in the United States. The applications and notifications collect information on the operations, structure, and ownership of the applicant or notificant; the proposed office; the financial condition of the applicant or notificant; home country supervision; and the anti-money-laundering laws and regulations of the applicant or notificant's home country.
Purpose: Foreign banks are required to obtain the prior approval of the Federal Reserve to establish a branch, agency, or representative office; to acquire ownership or control of a commercial lending company in the United States; or to change the status of any existing office in the United States. The applications enable the Federal Reserve to fulfill its statutory obligations under the Federal Reserve Act and the Bank Holding Company Act of 1956 by providing the Federal Reserve with the information it needs to evaluate each of the proposed transactions.
The Foreign Bank Supervision Enhancement Act of 1991 made changes to the authority given to the Federal Reserve under the International Banking Act of 1978. Among other things, it gave the Federal Reserve new authority to approve the establishment of U.S. offices by foreign banks and to regulate and supervise the U.S. operations of foreign banks. The Federal Reserve modified Regulation K in 1991 to incorporate these statutory changes. The regulation was revised again in 2001.
Foreign Banking Organizations.
Last Update: August 1, 2018