The Fed is extending the examination frequency for all types of representative offices of foreign banking operations.
Federal Reserve Board guidance provides revised examination guidelines and updates the examination frequency for U.S. representative offices of foreign banks. The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 extended to 18 months the examination frequency for U.S. branches and agencies of foreign banking organizations (FBOs) with less than $3 billion in total assets meeting certain criteria. The Fed said that because the overall supervisory strategy for a U.S. branch or agency of an FBO often incorporates a review of an institution’s representative offices, the Fed is extending the examination frequency for all types of representative offices.
According to SR 19-15, U.S. representative offices should be examined every 24 months unless the FBO’s U.S. operations and the types of activities conducted at the representative office warrant more frequent examinations. The Fed noted, however, that a de novo representative office of an FBO should be examined within 12 months of commencing operations. Also, the type of documentation and rating should vary depending on the representative office’s activities and the significance of supervisory concerns.
MainStory: TopStory BankingOperations
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