Exam 24: International Banking and Financial Regulations

Special subsidiaries of U.S. banks authorized to offer international banking services are known as:

Foreign bank growth continues unabated in the U.S., as the proportion of total U.S. banking assets controlled by foreign banks has nearly doubled since 1990.

Under regulations established by the Federal Reserve Board in 1981 IBFs must:

The Gramm-Leach-Billey Act permitted domestic and foreign financial firms to for financial holding companies.

Close to __________ of all foreign loans made by U.S. banks are made to lesser-developed countries (LDCs).

The principal purpose of establishing shell branches by U.S. banks is to attract Eurocurrency deposits from abroad.

The federal law which provides for federal licensing of branches and agencies of foreign banks operating in the U.S. is the:

One of the facilities used by major U.S. banks to expand abroad is the __________, which is really a booking office located principally in the Caribbean area and designed to attract Eurocurrency deposits.

All banks subject to the Basle Agreement must hold minimum levels of core and total capital.

Maturities for Eurobonds extend up to 15 years.

What are the essential differences between the following types of banking offices or facilities?

The term "FOREX" refers to the package of services offered by large U.S. international banks today which includes issuing bankers' acceptances and letters of credit and marketing Eurobonds.

The Basle Agreement concluded in 1988 requires central banks in leading industrialized countries to monitor the capital positions of their banks and required minimum ratios of capital to risk-adjusted assets.

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter a. Large, non-financial companies with manufacturing and trading operations in several different countries. b. Offshore banking offices designed to collect funds and avoid regulations. c. Facilities to aid international banking customers but these facilities cannot accept deposits or make loans. d. Subsidiaries of U.S. banking corporations or foreign banking companies active in the U.S. that offer banking services to accounts overseas.

A debt-for-equity swap involves a bank taking stock investments in exchange for loans.

Groups of banks put together to subscribe to a Eurobond issue are called a consortium or a syndicate.

In the international financial markets in recent years, mergers have taken place between:

The first foreign banks to enter the U.S. were from:

International banks have become the principal source of borrowed funds for developing countries.

The scandal involving the Bank of Credit and Commerce International of Luxembourg was a key factor in the passage of the Foreign Bank Supervision Act of 1991.