| For immediate release |
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The Federal Reserve Board today announced its approval of the application of Bank of Taiwan to retain its 12.84 percent interest in First Commercial Bank, both of Taipei, Taiwan, and thereby indirectly acquire more than 5 percent of the voting shares of FCB Taiwan California Bank, Alhambra, California. Attached is the Board's Order relating to this action. |
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Bank of Taiwan |
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Bank of Taiwan, Taipei, Taiwan ("BOT"), a foreign bank subject to the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842) to retain its ownership of 12.84 percent of the voting shares of First Commercial Bank, Taipei, Taiwan ("FCB"), and to thereby indirectly acquire more than 5 percent of the voting shares of FCB Taiwan California Bank, Alhambra, California ("Bank"), a de novo state-chartered bank. FCB separately has requested the Board's approval under section 3 of the BHC Act to acquire all the voting shares of Bank and thereby become a bank holding company.1 Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (61 Federal Register 7,791 (1996)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3 of the BHC Act. BOT, with total consolidated assets equivalent to $59.2 billion, is the largest commercial bank in Taiwan.2 BOT operates a branch in Los Angeles, California, and an agency in New York, New York. Taiwan owns all the voting shares of BOT. As noted above, BOT has filed this application in connection with FCB's proposal to establish Bank as a de novo state-chartered bank. Accordingly, the Board concludes that consummation of this proposal would not have a significantly adverse effect on competition or the concentration of banking resources in any relevant banking market. In addition, based on all the facts of record, the Board concludes that convenience and needs considerations are consistent with approval of the proposal.
Financial, Managerial, and Other Supervisory Considerations
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| The BHC Act also requires the Board to determine that the foreign
bank has provided adequate assurances that it will make available to the Board
such information on its operations and activities and those of its affiliates that
the Board deems appropriate to determine and enforce compliance with the BHC
Act and the IBA. The Board has reviewed restrictions on disclosure in
jurisdictions where BOT has material operations and has communicated with
relevant authorities concerning access to information. BOT has committed that,
to the extent not prohibited by applicable law, it will make available to the
Board such information on the operations of BOT and any of its affiliates that
the Board deems necessary to determine and enforce compliance with the BHC
Act, the IBA, and other applicable federal law. BOT also has committed to
cooperate with the Board to obtain any waivers or exemptions that may be
necessary in order to enable BOT to make any such information available to the
Board. In light of these commitments and other facts of record, the Board has
concluded that BOT has provided adequate assurances of access to any
appropriate information that the Board may request. For these reasons, based on
all the facts of record, and subject to the conditions noted below, the Board has
concluded that the supervisory factors it is required to consider under section
3(c) of the BHC Act are consistent with approval.
The Board also must consider the financial and managerial resources of a foreign bank that files an application under section 3 of the BHC Act. BOT must comply with minimum capital standards that conform to the Basle Capital Accord, as implemented by Taiwan. BOT's capital exceeds the minimum standards and is equivalent to the capital that would be required of a United States banking organization. Based on these and other facts of record, including confidential examination and supervisory information, the Board concludes that financial and managerial factors are consistent with approval, as are all other supervisory factors the Board must consider under section 3 of the BHC Act. Based on the foregoing and all other facts of record, including the commitments provided by BOT, the Board has determined that the application should be, and hereby is, approved. Should any restrictions on access to information on the operations or activities of BOT or any of its affiliates subsequently interfere with the Board's ability to determine the compliance by BOT or its affiliates with applicable federal statutes, the Board may require termination of any of BOT's or its affiliates' direct or indirect activities in the United States. The commitments and conditions relied on by the Board in reaching this decision, including the commitments discussed in this order, shall be deemed to be conditions imposed in writing by the Board in connection with its findings and decisions, and, as such, may be enforced in proceedings under applicable law. This transaction shall not be consummated before the fifteenth calendar day following the effective date of this order, or later than three months after the effective date of this order, unless such period is extended for good cause by the Board or the Federal Reserve Bank of San Francisco, acting pursuant to delegated authority. |
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By order of the Board of Governors,6 effective February 24, 1997.
(signed) Jennifer J. Johnson
Jennifer J. Johnson
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Footnotes 1 See First Commercial Bank, 83 Federal Reserve Bulletin __ (1997) (Order dated February 24, 1997). 2 Asset data are as of June 30, 1996, and reflect the exchange rate then in effect. Ranking data are as of December 31, 1995. 3 Pub. L. No. 102-242, § 201 et seq., 105 Stat. 2286 (1991). 4 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the Board determines whether a foreign bank is subject to consolidated home country supervision under the standards set forth in Regulation K. See 12 C.F.R. 225.13(b)(5). Regulation K provides that a foreign bank may be considered subject to consolidated supervision if the Board determines that the bank is supervised or regulated in such a manner that its home country supervisor receives sufficient information on the worldwide operations of the foreign bank, including the relationship of the bank and its affiliates, to assess the foreign bank's overall financial condition and compliance with law and regulation. See 12 C.F.R. 211.24(c)(1)(ii). 5 See Bank of Taiwan, 79 Federal Reserve Bulletin 541 (1993). 6 Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and Governors Kelley, Phillips, and Meyer. |
1997 Orders on banking applications
