---
kind: "section"
citation: "12 U.S.C. § 3102"
title: "12"
title_heading: "Banks and Banking"
number: "3102"
heading: "Establishment of Federal branches and agencies by foreign bank"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3102"
units:
  - "Chapter 32 — Foreign Bank Participation in Domestic Markets"
---

# §3102. Establishment of Federal branches and agencies by foreign bank

- (a) **Establishment and operation of Federal branches and agencies—**
  - (1) **Initial Federal branch or agency—** Except as provided in [section 3103 of this title](/usc/12/3103.md), a [foreign bank](/usc/12/3101.md?p=7) which engages directly in a banking business outside the United States may, with the approval of the [Comptroller](/usc/12/3101.md?p=4), establish one or more [Federal branches](/usc/12/3101.md?p=6) or [agencies](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) in which (1) it is not operating a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) pursuant to [State](/usc/12/3101.md?p=10) law and (2) the establishment of a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), as the case may be, by a [foreign bank](/usc/12/3101.md?p=7) is not prohibited by [State](/usc/12/3101.md?p=10) law.
  - (2) **Board conditions required to be included—** In considering any application for approval under this subsection, the [Comptroller](/usc/12/3101.md?p=4) of the Currency shall include any condition imposed by the [Board](/usc/12/3101.md?p=2) under [section 3105(d)(5) of this title](/usc/12/3105.md?p=d-5) as a condition for the approval of such application by the [agency](/usc/12/3101.md?p=1).
- (b) **Rules and regulations; rights and privileges; duties and liabilities; exceptions; coordination of examinations—** In establishing and operating a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), a [foreign bank](/usc/12/3101.md?p=7) shall be subject to such rules, regulations, and orders as the [Comptroller](/usc/12/3101.md?p=4) considers appropriate to carry out this section, which shall include provisions for service of process and maintenance of [branch](/usc/12/3101.md?p=3) and [agency](/usc/12/3101.md?p=1) accounts separate from those of the parent bank. Except as otherwise specifically provided in this chapter or in rules, regulations, or orders adopted by the [Comptroller](/usc/12/3101.md?p=4) under this section, operations of a [foreign bank](/usc/12/3101.md?p=7) at a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall be conducted with the same rights and privileges as a national bank at the same location and shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the National Bank Act to a national bank doing business at the same location, except that (1) any limitation or restriction based on the capital stock and surplus of a national bank shall be deemed to refer, as applied to a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), to the dollar equivalent of the capital stock and surplus of the [foreign bank](/usc/12/3101.md?p=7), and if the [foreign bank](/usc/12/3101.md?p=7) has more than one [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) the business transacted by all such [branches](/usc/12/3101.md?p=3) and [agencies](/usc/12/3101.md?p=1) shall be aggregated in determining compliance with the limitation; (2) a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall not be required to become a member bank, as that term is defined in [section 221 of this title](/usc/12/221.md); and (3) a [Federal agency](/usc/12/3101.md?p=5) shall not be required to become an insured bank as that term is defined in [section 1813(h) of this title](/usc/12/1813.md?p=h). The [Comptroller](/usc/12/3101.md?p=4) of the Currency shall coordinate examinations of [Federal branches](/usc/12/3101.md?p=6) and [agencies](/usc/12/3101.md?p=1) of [foreign banks](/usc/12/3101.md?p=7) with examinations conducted by the [Board](/usc/12/3101.md?p=2) under [section 3105(c)(1) of this title](/usc/12/3105.md?p=c-1) and, to the extent possible, shall participate in any simultaneous examinations of the United States operations of a [foreign bank](/usc/12/3101.md?p=7) requested by the [Board](/usc/12/3101.md?p=2) under such section.
- (c) **Application to establish Federal branch or agency; matters considered—** In acting on any application to establish a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), the [Comptroller](/usc/12/3101.md?p=4) shall take into account the effects of the proposal on competition in the domestic and foreign commerce of the United States, the financial and managerial resources and future prospects of the applicant [foreign bank](/usc/12/3101.md?p=7) and the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), and the convenience and needs of the community to be served.
- (d) **Receipt of deposits and exercising of fiduciary powers at Federal agency prohibited—** Notwithstanding any other provision of this section, a [foreign bank](/usc/12/3101.md?p=7) shall not receive deposits or exercise fiduciary powers at any [Federal agency](/usc/12/3101.md?p=5). A [foreign bank](/usc/12/3101.md?p=7) may, however, maintain at a [Federal agency](/usc/12/3101.md?p=5) for the account of others [credit](/usc/12/5481.md?p=7) balances incidental to, or arising out of, the exercise of its lawful powers.
- (e) **Maintenance of Federal branch and Federal agency in same State prohibited—** No [foreign bank](/usc/12/3101.md?p=7) may maintain both a [Federal branch](/usc/12/3101.md?p=6) and a [Federal agency](/usc/12/3101.md?p=5) in the same [State](/usc/12/3101.md?p=10).
- (f) **Conversion of foreign bank branch, agency or commercial lending company into Federal branch or agency; approval of Comptroller—** Any [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) operated by a [foreign bank](/usc/12/3101.md?p=7) in a [State](/usc/12/3101.md?p=10) pursuant to [State](/usc/12/3101.md?p=10) law and any [commercial lending company](/usc/12/3101.md?p=9) [controlled](/usc/12/3101.md?p=13) by a [foreign bank](/usc/12/3101.md?p=7) may be converted into a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) with the approval of the [Comptroller](/usc/12/3101.md?p=4). In the event of any conversion pursuant to this subsection, all of the liabilities of such [foreign bank](/usc/12/3101.md?p=7) previously payable at the [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1), or all of the liabilities of the [commercial lending company](/usc/12/3101.md?p=9), shall thereafter be payable by such [foreign bank](/usc/12/3101.md?p=7) at the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) established under this subsection.
- (g) **Deposit requirements; asset requirements—**
  - (1) Upon the opening of a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) and thereafter, a [foreign bank](/usc/12/3101.md?p=7), in addition to any deposit requirements imposed under [section 3104 of this title](/usc/12/3104.md), shall keep on deposit, in accordance with such rules and regulations as the [Comptroller](/usc/12/3101.md?p=4) may prescribe, with a member bank designated by such [foreign bank](/usc/12/3101.md?p=7), dollar deposits or investment securities of the type that may be held by national banks for their own accounts pursuant to paragraph “Seventh” of [section 24 of this title](/usc/12/24.md), in an amount as hereinafter set forth. Such depository bank shall be located in the [State](/usc/12/3101.md?p=10) where such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located and shall be approved by the [Comptroller](/usc/12/3101.md?p=4) if it is a national bank and by the [Board](/usc/12/3101.md?p=2) of Governors of the Federal Reserve System if it is a [State](/usc/12/3101.md?p=10) Bank.
  - (2) The aggregate amount of deposited investment securities (calculated on the basis of principal amount or market value, whichever is lower) and dollar deposits for each [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) established and operating under this section shall be not less than the greater of (1) that amount of capital (but not surplus) which would be required of a national bank being organized at this location, or (2) 5 per centum of the total liabilities of such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), including acceptances, but excluding (A) accrued expenses, and (B) amounts due and other liabilities to [offices](/usc/12/3101.md?p=16), [branches](/usc/12/3101.md?p=3), [agencies](/usc/12/3101.md?p=1), and [subsidiaries](/usc/12/3101.md?p=13) of such [foreign bank](/usc/12/3101.md?p=7). The [Comptroller](/usc/12/3101.md?p=4) may require that the assets deposited pursuant to this subsection shall be maintained in such amounts as he may from time to time deem necessary or desirable, for the maintenance of a sound financial condition, the protection of depositors, and the public interest, but such additional amount shall in no event be greater than would be required to conform to generally accepted banking practices as manifested by banks in the area in which the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located.
  - (3) The deposit shall be maintained with any such member bank pursuant to a deposit agreement in such form and containing such limitations and conditions as the [Comptroller](/usc/12/3101.md?p=4) may prescribe. So long as it continues business in the ordinary course such [foreign bank](/usc/12/3101.md?p=7) shall, however, be permitted to collect income on the securities and funds so deposited and from time to time examine and exchange such securities.
  - (4) Subject to such conditions and requirements as may be prescribed by the [Comptroller](/usc/12/3101.md?p=4), each [foreign bank](/usc/12/3101.md?p=7) shall hold in each [State](/usc/12/3101.md?p=10) in which it has a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), assets of such types and in such amount as the [Comptroller](/usc/12/3101.md?p=4) may prescribe by general or specific regulation or ruling as necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, creditors and the public interest. In determining compliance with any such prescribed asset requirements, the [Comptroller](/usc/12/3101.md?p=4) shall give [credit](/usc/12/5481.md?p=7) to (A) assets required to be maintained pursuant to paragraphs (1) and (2) of this subsection, (B) reserves required to be maintained pursuant to [section 3105(a) of this title](/usc/12/3105.md?p=a), and (C) assets pledged, and surety bonds payable, to the Federal Deposit Insurance Corporation to secure the payment of domestic deposits. The [Comptroller](/usc/12/3101.md?p=4) may prescribe different asset requirements for [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) in different [States](/usc/12/3101.md?p=10), in order to ensure competitive equality of [Federal branches](/usc/12/3101.md?p=6) and [agencies](/usc/12/3101.md?p=1) with [State branches](/usc/12/3101.md?p=12) and [agencies](/usc/12/3101.md?p=1) and domestic banks in those [States](/usc/12/3101.md?p=10).
- (h) **Additional branches or agencies—**
  - (1) **Approval of agency required—** A [foreign bank](/usc/12/3101.md?p=7) with a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) operating in any [State](/usc/12/3101.md?p=10) may (A) with the prior approval of the [Comptroller](/usc/12/3101.md?p=4) establish and operate additional [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) in the [State](/usc/12/3101.md?p=10) in which such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located on the same terms and conditions and subject to the same limitations and restrictions as are applicable to the establishment of [branches](/usc/12/3101.md?p=3) by a national bank if the principal [office](/usc/12/3101.md?p=16) of such national bank were located at the same place as the initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) in such [State](/usc/12/3101.md?p=10) of such [foreign bank](/usc/12/3101.md?p=7) and (B) change the designation of its initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) to any other [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) subject to the same limitations and restrictions as are applicable to a change in the designation of the principal [office](/usc/12/3101.md?p=16) of a national bank if such principal [office](/usc/12/3101.md?p=16) were located at the same place as such initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1).
  - (2) **Notice to and comment by Board—** The [Comptroller](/usc/12/3101.md?p=4) of the Currency shall provide the [Board](/usc/12/3101.md?p=2) with notice and an opportunity for comment on any application to establish an additional [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) under this subsection.
- (i) **Termination of authority to operate Federal branch or agency—** Authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall terminate when the parent [foreign bank](/usc/12/3101.md?p=7) voluntarily relinquishes it or when such parent [foreign bank](/usc/12/3101.md?p=7) is dissolved or its authority or existence is otherwise terminated or canceled in the country of its organization. If (1) at any time the [Comptroller](/usc/12/3101.md?p=4) is of the opinion or has reasonable cause to believe that such [foreign bank](/usc/12/3101.md?p=7) has violated or failed to comply with any of the provisions of this section or any of the rules, regulations, or orders of the [Comptroller](/usc/12/3101.md?p=4) made pursuant to this section, or (2) a conservator is appointed for such [foreign bank](/usc/12/3101.md?p=7) or a similar proceeding is initiated in the [foreign bank](/usc/12/3101.md?p=7)’s country of organization, the [Comptroller](/usc/12/3101.md?p=4) shall have the power, after opportunity for hearing, to revoke the [foreign bank](/usc/12/3101.md?p=7)’s authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1). The [Comptroller](/usc/12/3101.md?p=4) may, in his discretion, deny such opportunity for hearing if he determines such denial to be in the public interest. The [Comptroller](/usc/12/3101.md?p=4) may restore any such authority upon due proof of compliance with the provisions of this section and the rules, regulations, or orders of the [Comptroller](/usc/12/3101.md?p=4) made pursuant to this section.
- (j) **Receivership over assets of foreign bank in United States—**
  - (1) Whenever the [Comptroller](/usc/12/3101.md?p=4) revokes a [foreign bank](/usc/12/3101.md?p=7)’s authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) or whenever any creditor of any such [foreign bank](/usc/12/3101.md?p=7) shall have obtained a judgment against it arising out of a transaction with a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) in any court of record of the United States or any [State](/usc/12/3101.md?p=10) of the United States and made application, accompanied by a certificate from the clerk of the court stating that such judgment has been rendered and has remained unpaid for the space of thirty days, or whenever the [Comptroller](/usc/12/3101.md?p=4) shall become satisfied that such [foreign bank](/usc/12/3101.md?p=7) is insolvent, he may, after due consideration of its affairs, in any such case, appoint a receiver who shall take possession of all the property and assets of such [foreign bank](/usc/12/3101.md?p=7) in the United States and exercise the same rights, privileges, powers, and authority with respect thereto as are now exercised by receivers of national banks appointed by the [Comptroller](/usc/12/3101.md?p=4).
  - (2) In any receivership proceeding ordered pursuant to this [subsection (j)](#j), whenever there has been paid to each and every depositor and creditor of such [foreign bank](/usc/12/3101.md?p=7) whose claim or claims shall have been proved or allowed, the full amount of such claims arising out of transactions had by them with any [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of such [foreign bank](/usc/12/3101.md?p=7) located in any [State](/usc/12/3101.md?p=10) of the United States, except (A) claims that would not represent an enforceable legal obligation against such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) if such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) were a separate legal entity, and (B) amounts due and other liabilities to other [offices](/usc/12/3101.md?p=16) or [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) of, and wholly owned (except for a nominal number of [directors](/usc/12/5481.md?p=10)’ shares) [subsidiaries](/usc/12/3101.md?p=13) of, such [foreign bank](/usc/12/3101.md?p=7), and all expenses of the receivership, the [Comptroller](/usc/12/3101.md?p=4) or the Federal Deposit Insurance Corporation, where that Corporation has been appointed receiver of the [foreign bank](/usc/12/3101.md?p=7), shall turn over the remainder, if any, of the assets and proceeds of such [foreign bank](/usc/12/3101.md?p=7) to the head [office](/usc/12/3101.md?p=16) of such [foreign bank](/usc/12/3101.md?p=7), or to the duly appointed domiciliary liquidator or receiver of such [foreign bank](/usc/12/3101.md?p=7).

## Source credit

(Pub. L. 95–369, § 4, Sept. 17, 1978, 92 Stat. 610; Pub. L. 102–242, title II, §§ 202(b), (c), 203(b), Dec. 19, 1991, 105 Stat. 2290, 2291; Pub. L. 106–569, title XII, § 1234, Dec. 27, 2000, 114 Stat. 3037.)

## Notes

### Editorial Notes

### References in Text

For definition of “this chapter”, referred to in subsec. (b), see References in Text note set out under section 3101 of this title.

The National Bank Act, referred to in subsec. (b), is act June 3, 1864, ch. 106, 13 Stat. 99, which is classified principally to chapter 2 (§ 21 et seq.) of this title. For complete classification of this Act to the Code, see References in Text note set out under section 38 of this title.

Section 3104 of this title, referred to in subsec. (g)(1), was in the original a reference to section 6 of Pub. L. 95–369, which enacted section 3104 of this title and amended sections 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823, 1828, 1829b, and 1831b of this title.

### Amendments

2000—Subsec. (b). Pub. L. 106–569 redesignated cls. (2) to (4) as (1) to (3), respectively, and struck out former cl. (1) which read as follows: “the requirements of section 481 of this title shall be met with respect to a Federal branch or agency if it is examined at least once in each calendar year;”.

1991—Subsec. (a). Pub. L. 102–242, § 202(b), inserted heading, designated existing provisions as par. (1) and inserted heading, and added par. (2).

Subsec. (b). Pub. L. 102–242, § 203(b), inserted at end: “The Comptroller of the Currency shall coordinate examinations of Federal branches and agencies of foreign banks with examinations conducted by the Board under section 3105(c)(1) of this title and, to the extent possible, shall participate in any simultaneous examinations of the United States operations of a foreign bank requested by the Board under such section.”

Subsec. (h). Pub. L. 102–242, § 202(c), amended heading, designated existing provisions as par. (1), inserted par. (1) heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2).

### Statutory Notes and Related Subsidiaries

### Study and Report on Subsidiary Requirements for Foreign Banks

Pub. L. 102–242, title II, § 215, Dec. 19, 1991, 105 Stat. 2304, as amended by Pub. L. 102–550, title XVI, § 1604(a)(14), Oct. 28, 1992, 106 Stat. 4083, directed Secretary of the Treasury, jointly with Board of Governors of the Federal Reserve System and in consultation with Comptroller of the Currency, Federal Deposit Insurance Corporation, and Attorney General, to conduct a study of whether foreign banks should be required to conduct banking operations in United States through subsidiaries rather than branches and, not later than 1 year after Dec. 19, 1991, to transmit to Congress a report on the results of the study.