[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4926 Received in Senate (RDS)]
103d CONGRESS
2d Session
H. R. 4926
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 30 (legislative day, September 12), 1994
Received
_______________________________________________________________________
AN ACT
To require the Secretary of the Treasury to identify foreign countries
which may be denying national treatment to United States banking
organizations and to assess whether any such denial may be having a
significant adverse effect on such organizations, and to require
Federal banking agencies to take such assessments into account in
considering certain applications and notices by foreign banks and other
persons of a foreign country.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Treatment in Banking Act of
1994''.
SEC. 2. FAILURE TO ACCORD NATIONAL TREATMENT TO UNITED STATES BANKING
ORGANIZATIONS.
(a) Identifying Countries That May Be Denying National Treatment to
United States Banking Organizations.--The Secretary of the Treasury
shall identify, after consultation with the Federal banking agencies,
the extent to which foreign countries may be denying national treatment
to United States banking organizations--
(1) based on information relating to banking in the most
recent report under section 3602 of the Omnibus Trade and
Competitiveness Act of 1988 (or the most recent update of such
report); or
(2) based on more recent information that the Secretary
considers appropriate.
(b) Assessing Whether Possible Denial of National Treatment May Be
Having a Significant Adverse Effect.--
(1) In general.--The Secretary shall assess, after
consultation with the Federal banking agencies, whether the
possible denial of national treatment to United States banking
organizations by a foreign country identified under subsection
(a) may be having a significant adverse effect on such
organizations.
(2) Factors to be considered.--In making any assessment
under paragraph (1), the Secretary shall consider appropriate
factors, including the following:
(A) The extent of United States trade with and
investment in the foreign country, the size of the
foreign country's markets for banking services, and the
extent to which United States banking organizations
operate or seek to operate in those markets.
(B) The importance of operations by United States
banking organizations in the foreign country to the
export of goods and services by United States firms to
such country.
(C) The extent to which the foreign country
provides in advance to United States banking
organizations a written draft of any measure of general
application that the country proposes to adopt, such as
regulations, guidelines, or other policies regarding
new products and services, in order to allow an
opportunity for such organizations to comment on the
measure and for such comments to be taken into account
by the foreign country.
(D) The extent to which the foreign country--
(i) makes available, in writing, to United
States banking organizations the foreign
country's requirements for completing any
application relating to the provision of
financial services by any such organization;
(ii) applies published, objective standards
and criteria in evaluating any such application
from any United States banking organization;
and
(iii) renders administrative decisions
relating to any such application within a
reasonable period of time.
(3) Solicitation of comments.--Before making any assessment
under paragraph (1), the Secretary may solicit comments
concerning the effect of the possible denial of national
treatment on United States banking organizations from
interested parties.
(c) Publication.--The Secretary may publish a notice in the Federal
Register of--
(1) any assessment made under subsection (b)(1) with
respect to any country; and
(2) any change made with respect to any assessment under
such subsection which was previously published in the Federal
Register.
(d) Definitions.--The following definitions shall apply for
purposes of this section:
(1) Banking organization.--
(A) In general.--The term ``banking organization''
means any bank, any bank holding company (including any
company required to file reports pursuant to section
4(f)(6) of the Bank Holding Company Act of 1956), and
any savings and loan holding company (as such term is
defined in section 10(a)(1)(D) of the Home Owners' Loan
Act).
(B) Banking terms.--For purposes of this paragraph,
the terms ``bank'' and ``bank holding company'' have
the same meaning as in section 2 of the Bank Holding
Company Act of 1956.
(2) Federal banking agencies.--The term ``Federal banking
agencies'' has the same meaning as in section 3(z) of the
Federal Deposit Insurance Act.
(3) National treatment.--The term ``national treatment''
means, with respect to any foreign country, treatment that
offers United States banking organizations the same competitive
opportunities (including effective market access) in such
country as are available to the foreign country's domestic
banking organizations in like circumstances.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3. APPLICATIONS BY FOREIGN BANKS AND OTHER PERSONS OF A FOREIGN
COUNTRY.
(a) Applications Under the International Banking Act of 1978.--
Section 7(d) of the International Banking Act of 1978 (12 U.S.C.
3105(d)) is amended by adding at the end the following new paragraph:
``(6) Additional standard.--In acting on any application
under paragraph (1), the Board shall take into account whether
the Secretary of the Treasury has published a notice, in
accordance with section 2(c) of the National Treatment in
Banking Act of 1994, that the possible denial of national
treatment to United States banking organizations by the foreign
bank's home country identified under section 2(a) of such Act
may be having a significant adverse effect on such
organizations.''.
(b) Applications Under the Bank Holding Company Act of 1956.--
Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844) is
amended by adding at the end the following new subsection:
``(g) Applications by a Foreign Bank.--In considering any
application or notice under section 3 or 4 by any foreign bank (as
defined in section 1(b) of the International Banking Act of 1978), the
Board shall take into account whether the Secretary of the Treasury has
published a notice, in accordance with section 2(c) of the National
Treatment in Banking Act of 1994, that the possible denial of national
treatment to United States banking organizations by the foreign bank's
home country identified under section 2(a) of such Act may be having a
significant adverse effect on such organizations.''.
(c) Amendment to Change in Bank Control Act.--Section 7(j) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(j)) is amended by adding
at the end the following new paragraph:
``(19) Notice by a person of a foreign country.--
``(A) In general.--In considering a notice under
this subsection by a person of a foreign country, the
appropriate Federal banking agency shall take into
account whether the Secretary of the Treasury has
published a notice, in accordance with section 2(c) of
the National Treatment in Banking Act of 1994, that the
possible denial of national treatment to United States
banking organizations by such person's home country
identified under section 2(a) of such Act may be having
a significant adverse effect on such organizations.
``(B) Person of a foreign country defined.--For
purposes of this paragraph, the term `person of a
foreign country' means--
``(i) any entity that--
``(I) is organized under the laws
of the foreign country, or
``(II) has the entity's principal
place of business in the foreign
country;
``(ii) an individual who--
``(I) is a citizen of the foreign
country, or
``(II) is domiciled in the foreign
country; and
``(iii) any person that is, directly or
indirectly, under the control of any entity or
individual described in clause (i) or (ii).''.
(d) Amendment to National Bank Act.--Section 5155 of the Revised
Statutes (12 U.S.C. 36) is amended by adding at the end the following
new subsection:
``(i) Application by a Bank Which Is a Person of a Foreign
Country.--In considering any application under this section by any bank
which is a person of a foreign country (as defined in section
7(j)(19)(B) of the Federal Deposit Insurance Act), the Comptroller of
the Currency shall take into account whether the Secretary of the
Treasury has published a notice, in accordance with section 2(c) of the
National Treatment in Banking Act of 1994, that the possible denial of
national treatment to United States banking organizations by such
person's home country identified under section 2(a) of such Act may be
having a significant adverse effect on such organizations.''.
(e) Amendment to Federal Deposit Insurance Act.--Section 18(c) of
the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by
adding at the end the following new paragraph:
``(12) Application by a bank which is a person of a foreign
country.--In considering any merger transaction under this
subsection involving any bank which is a person of a foreign
country (as defined in section 7(j)(19)(B)), the responsible
agency shall take into account whether the Secretary of the
Treasury has published a notice, in accordance with section
2(c) of the National Treatment in Banking Act of 1994, that the
possible denial of national treatment to United States banking
organizations by such person's home country identified under
section 2(a) of such Act may be having a significant adverse
effect on such organizations.''.
(f) Amendment to Federal Reserve Act.--The 3d undesignated
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is
amended in the proviso by inserting ``, including section 5155(i) of
the Revised Statutes,'' after ``limitations and restrictions''.
SEC. 4. CONSISTENCY WITH BILATERAL AND MULTILATERAL AGREEMENTS.
No authority under this Act or any amendment made by this Act to
any other law may be used to take any action with respect to a foreign
country which is inconsistent with any bilateral or multilateral
agreement that governs financial services in which such country is
obligated to provide national treatment for United States banking
organizations.
Passed the House of Representatives September 30, 1994.
Attest:
DONNALD K. ANDERSON,
Clerk.