Section 211.24 of Regulation K
Who must file?
A foreign banking organization must submit an application for the specific consent of the Federal Reserve to establish its initial branch, agency, commercial lending company, or representative office in the United States under section 211.24 of Regulation K. In certain cases, a foreign bank may be able to establish U.S. offices after providing prior notice to the Federal Reserve pursuant to section 211.24(a)(2) of Regulation K.
Publication requirements--newspaper/Federal Register
The foreign bank must publish notice of its proposal in a newspaper of general circulation in the community in which the foreign bank would engage in business pursuant to section 211.24(b)(2) of Regulation K.
Required information
The information required in Form FR K-2 must be provided. Note that a response should be provided for all report items. Please enter “not applicable” or “N/A,” where appropriate.
Processing time frames
In the cases where a U.S. office may be established under the prior notice procedure, the prior notice period would expire 45 calendar days after the notice is received by the Federal Reserve. The Federal Reserve may waive a portion of the 45-day notice period, suspend processing of the new notice, or act on the notice under the specific consent procedures based on the circumstances presented.
The Federal Reserve is required to act on an application for specific consent to establish a U.S. branch, agency, or commercial lending company within 180 calendar days of receipt unless the Federal Reserve notifies the applicant that the period is being extended for an additional 180 days. These time frames do not apply to an application to establish a representative office.
Factors reviewed
For proposals to establish a branch, agency, commercial lending company, or representative office, the Federal Reserve considers the factors enumerated in section 211.24(c) or (d)(2) of Regulation K.
Consummation period
None.
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