---
kind: "section"
citation: "12 U.S.C. § 3103"
title: "12"
title_heading: "Banks and Banking"
number: "3103"
heading: "Interstate banking by foreign banks"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3103"
units:
  - "Chapter 32 — Foreign Bank Participation in Domestic Markets"
---

# §3103. Interstate banking by foreign banks

- (a) **Interstate branching and agency operations—**
  - (1) **Federal branch or agency—** Subject to the provisions of this chapter and with the prior written approval by the [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency of an application, a [foreign bank](/usc/12/3101.md?p=7) may establish and operate 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) outside the home [State](/usc/12/3101.md?p=10) of such [foreign bank](/usc/12/3101.md?p=7) to the extent that the establishment and operation of such [branch](/usc/12/3101.md?p=3) would be permitted under [section 36(g) of this title](/usc/12/36.md?p=g) or [section 1831u of this title](/usc/12/1831u.md) if the [foreign bank](/usc/12/3101.md?p=7) were a national bank whose home [State](/usc/12/3101.md?p=10) is the same [State](/usc/12/3101.md?p=10) as the home [State](/usc/12/3101.md?p=10) of the [foreign bank](/usc/12/3101.md?p=7).
  - (2) **State branch or agency—** Subject to the provisions of this chapter and with the prior written approval by the [Board](/usc/12/3101.md?p=2) and the appropriate [State bank supervisor](/usc/12/3101.md?p=17) of an application, a [foreign bank](/usc/12/3101.md?p=7) may establish and operate a [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) outside the home [State](/usc/12/3101.md?p=10) of such [foreign bank](/usc/12/3101.md?p=7) to the extent that such establishment and operation would be permitted under section [1828(d)(4)](/usc/12/1828.md?p=d-4) or [1831u](/usc/12/1831u.md) of this title if the [foreign bank](/usc/12/3101.md?p=7) were a [State](/usc/12/3101.md?p=10) bank whose home [State](/usc/12/3101.md?p=10) is the same [State](/usc/12/3101.md?p=10) as the home [State](/usc/12/3101.md?p=10) of the [foreign bank](/usc/12/3101.md?p=7).
  - (3) **Criteria for determination—** In approving an application under paragraph [(1)](#a-1) or [(2)](#a-2), the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency—
    - (A) shall apply the standards applicable to the establishment of a [foreign bank](/usc/12/3101.md?p=7) [office](/usc/12/3101.md?p=16) in the United States under [section 3105(d) of this title](/usc/12/3105.md?p=d);
    - (B) may not approve an application unless the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency—
      - (i) determine that the [foreign bank](/usc/12/3101.md?p=7)’s financial resources, including the capital level of the bank, are equivalent to those required for a domestic bank to be approved for branching under [section 36 of this title](/usc/12/36.md) and [section 1831u of this title](/usc/12/1831u.md); and
      - (ii) consult with the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury regarding capital equivalency; and
    - (C) shall apply the same requirements and conditions to which an application for an interstate merger transaction is subject under paragraphs (1), (3), and (4) of [section 1831u(b) of this title](/usc/12/1831u.md?p=b).
  - (4) **Operation—** Subsections (c) and (d)(2) of [section 1831u of this title](/usc/12/1831u.md) shall apply with respect to each [branch](/usc/12/3101.md?p=3) and [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7) which is established and operated pursuant to an application approved under this subsection in the same manner and to the same extent such provisions of such section apply to a domestic [branch](/usc/12/3101.md?p=3) of a national or [State](/usc/12/3101.md?p=10) bank (as such terms are defined in [section 1813 of this title](/usc/12/1813.md)) which resulted from a merger transaction under such [section 1831u of this title](/usc/12/1831u.md).
  - (5) **Exclusive authority for additional branches—** Except as provided in this section, a [foreign bank](/usc/12/3101.md?p=7) may not, directly or indirectly, acquire, establish, or operate a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) other than the home [State](/usc/12/3101.md?p=10) of such bank.
  - (6) **Requirement for a separate subsidiary—** If the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency, taking into account differing regulatory or accounting standards, finds that adherence by a [foreign bank](/usc/12/3101.md?p=7) to capital requirements equivalent to those imposed under [section 36 of this title](/usc/12/36.md) and [section 1831u of this title](/usc/12/1831u.md) could be verified only if the banking activities of such bank in the United States are carried out in a domestic banking [subsidiary](/usc/12/3101.md?p=13) within the United States, the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency may approve an application under paragraph [(1)](#a-1) or [(2)](#a-2) subject to a requirement that the [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) [controlling](/usc/12/3101.md?p=13) the [foreign bank](/usc/12/3101.md?p=7) establish a domestic banking [subsidiary](/usc/12/3101.md?p=13) in the United States.
  - (7) **Additional authority for interstate branches and agencies of foreign banks, upgrades of certain foreign bank agencies and branches—** Notwithstanding paragraphs [(1)](#a-1) and [(2)](#a-2), a [foreign bank](/usc/12/3101.md?p=7) may—
    - (A) with the approval of the [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency, establish and operate a [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) or, with the approval of the [Board](/usc/12/3101.md?p=2) and the appropriate [State bank supervisor](/usc/12/3101.md?p=17), a [State branch](/usc/12/3101.md?p=12) or [State agency](/usc/12/3101.md?p=11) in any [State](/usc/12/3101.md?p=10) outside the [foreign bank](/usc/12/3101.md?p=7)’s home [State](/usc/12/3101.md?p=10) if—
      - (i) the establishment and operation of such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is permitted by the [State](/usc/12/3101.md?p=10) in which the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is to be established; and
      - (ii) in the case of a Federal or [State branch](/usc/12/3101.md?p=12), the [branch](/usc/12/3101.md?p=3) receives only such deposits as would be permitted for a corporation organized under section 25A of the Federal Reserve Act [[12 U.S.C. 611](/usc/12/611.md) et seq.]; or
    - (B) with the approval of the [Board](/usc/12/3101.md?p=2) and the relevant licensing authority (the [Comptroller](/usc/12/3101.md?p=4) in the case of a [Federal branch](/usc/12/3101.md?p=6) or the appropriate [State](/usc/12/3101.md?p=10) supervisor in the case of a [State branch](/usc/12/3101.md?p=12)), upgrade an [agency](/usc/12/3101.md?p=1), or a [branch](/usc/12/3101.md?p=3) of the type referred to in [subparagraph (A)(ii)](#a-7-A-ii), located in a [State](/usc/12/3101.md?p=10) outside the [foreign bank](/usc/12/3101.md?p=7)’s home [State](/usc/12/3101.md?p=10), into a Federal or [State branch](/usc/12/3101.md?p=12) if—
      - (i) the establishment and operation of such [branch](/usc/12/3101.md?p=3) is permitted by such [State](/usc/12/3101.md?p=10); and
      - (ii) such [agency](/usc/12/3101.md?p=1) or [branch](/usc/12/3101.md?p=3)—
        - (I) was in operation in such [State](/usc/12/3101.md?p=10) on the day before September 29, 1994; or
        - (II) has been in operation in such [State](/usc/12/3101.md?p=10) for a period of time that meets the [State](/usc/12/3101.md?p=10)’s minimum age requirement permitted under [section 1831u(a)(5) of this title](/usc/12/1831u.md?p=a-5).
  - (8) **Continuing requirement for meeting community credit needs after initial interstate entry by acquisition—**
    - (A) **In general—** If a [foreign bank](/usc/12/3101.md?p=7) acquires a bank or a [branch](/usc/12/3101.md?p=3) of a bank, in a [State](/usc/12/3101.md?p=10) in which the [foreign bank](/usc/12/3101.md?p=7) does not maintain a [branch](/usc/12/3101.md?p=3), and such acquired bank is, or is part of, a regulated financial institution (as defined in section 803 of the Community Reinvestment Act of 1977 [[12 U.S.C. 2902](/usc/12/2902.md)]), the Community Reinvestment Act of 1977 [[12 U.S.C. 2901](/usc/12/2901.md) et seq.] shall continue to apply to each [branch](/usc/12/3101.md?p=3) of the [foreign bank](/usc/12/3101.md?p=7) which results from the acquisition as if such [branch](/usc/12/3101.md?p=3) were a regulated financial institution.
    - (B) **Exception for branch that receives only deposits permissible for an Edge Act corporation—** [Paragraph (1)](#a-1) shall not apply to any [branch](/usc/12/3101.md?p=3) that receives only such deposits as are permissible for a corporation organized under section 25A of the Federal Reserve Act [[12 U.S.C. 611](/usc/12/611.md) et seq.] to receive.
  - (9) **Home State of domestic bank defined—** For purposes of this subsection, the term “home [State](/usc/12/3101.md?p=10)” means—
    - (A) with respect to a national bank, the [State](/usc/12/3101.md?p=10) in which the main [office](/usc/12/3101.md?p=16) of the bank is located; and
    - (B) with respect to a [State](/usc/12/3101.md?p=10) bank, the [State](/usc/12/3101.md?p=10) by which the bank is chartered.
- (b) **Continuance of lawful interstate banking operations previously commenced—** Unless its authority to do so is lawfully revoked otherwise than pursuant to this section, a [foreign bank](/usc/12/3101.md?p=7), notwithstanding any restriction or limitation imposed under [subsection (a)](#a) of this section, may establish and operate, outside its home [State](/usc/12/3101.md?p=10), any [State branch](/usc/12/3101.md?p=12), [State agency](/usc/12/3101.md?p=11), or bank or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) which commenced lawful operation or for which an application to commence business had been lawfully filed with the appropriate [State](/usc/12/3101.md?p=10) or Federal authority, as the case may be, on or before July 27, 1978. Notwithstanding [subsection (a)](#a), a [foreign bank](/usc/12/3101.md?p=7) may continue to operate, after September 29, 1994, any [Federal branch](/usc/12/3101.md?p=6), [State branch](/usc/12/3101.md?p=12), [Federal agency](/usc/12/3101.md?p=5), [State agency](/usc/12/3101.md?p=11), or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) which such bank was operating on the day before September 29, 1994, to the extent the [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [subsidiary](/usc/12/3101.md?p=13) continues, after September 29, 1994, to engage in operations which were lawful under the laws in effect on the day before September 29, 1994.
- (c) **Determination of home State of foreign bank—** For the purposes of this section—
  - (1) in the case of a [foreign bank](/usc/12/3101.md?p=7) that has any [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) bank in more than 1 [State](/usc/12/3101.md?p=10), the home [State](/usc/12/3101.md?p=10) of the [foreign bank](/usc/12/3101.md?p=7) is the 1 [State](/usc/12/3101.md?p=10) of such [States](/usc/12/3101.md?p=10) which is selected to be the home [State](/usc/12/3101.md?p=10) by the [foreign bank](/usc/12/3101.md?p=7) or, in default of any such selection, by the [Board](/usc/12/3101.md?p=2); and
  - (2) in the case of a [foreign bank](/usc/12/3101.md?p=7) that does not have a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) bank in more than 1 [State](/usc/12/3101.md?p=10), the home [State](/usc/12/3101.md?p=10) of the [foreign bank](/usc/12/3101.md?p=7) is the [State](/usc/12/3101.md?p=10) in which the [foreign bank](/usc/12/3101.md?p=7) has a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) bank.
- (d) **Clarification of branching rules in case of foreign bank with domestic bank subsidiary—** In the case of a [foreign bank](/usc/12/3101.md?p=7) that has a domestic bank [subsidiary](/usc/12/3101.md?p=13) within the United States—
  - (1) the fact that such bank [controls](/usc/12/3101.md?p=13) a domestic bank shall not affect the authority of the [foreign bank](/usc/12/3101.md?p=7) to establish Federal and [State branches](/usc/12/3101.md?p=12) or [agencies](/usc/12/3101.md?p=1) to the extent permitted under [subsection (a)](#a); and
  - (2) the fact that the domestic bank is [controlled](/usc/12/3101.md?p=13) by a [foreign bank](/usc/12/3101.md?p=7) which has Federal or [State branches](/usc/12/3101.md?p=12) or [agencies](/usc/12/3101.md?p=1) in [States](/usc/12/3101.md?p=10) other than the home [State](/usc/12/3101.md?p=10) of such domestic bank shall not affect the authority of the domestic bank to establish [branches](/usc/12/3101.md?p=3) outside the home [State](/usc/12/3101.md?p=10) of the domestic bank to the extent permitted under [section 36(g) of this title](/usc/12/36.md?p=g) or section [1828(d)(4)](/usc/12/1828.md?p=d-4) or [1831u](/usc/12/1831u.md) of this title, as the case may be.

## Source credit

(Pub. L. 95–369, § 5, Sept. 17, 1978, 92 Stat. 613; Pub. L. 103–328, title I, §§ 104, 107(f), Sept. 29, 1994, 108 Stat. 2354, 2361; Pub. L. 106–102, title VII, § 732, Nov. 12, 1999, 113 Stat. 1478.)

## Notes

### Editorial Notes

### References in Text

For definition of “this chapter”, referred to in subsec. (a)(1), (2), see References in Text note set out under section 3101 of this title.

The Community Reinvestment Act of 1977, referred to in subsec. (a)(8)(A), is title VIII of Pub. L. 95–128, Oct. 12, 1977, 91 Stat. 1147, which is classified generally to chapter 30 (§ 2901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2901 of this title and Tables.

Section 25A of the Federal Reserve Act, referred to in subsec. (a)(7)(A)(ii), (8)(B), popularly known as the Edge Act, is classified to subchapter II (§ 611 et seq.) of chapter 6 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 611 of this title and Tables.

### Amendments

1999—Subsec. (a)(7). Pub. L. 106–102 amended heading and text of par. (7) generally. Prior to amendment, text read as follows: “Notwithstanding paragraphs (1) and (2), a foreign bank may, with the approval of the Board and the Comptroller of the Currency, establish and operate a Federal branch or Federal agency or, with the approval of the Board and the appropriate State bank supervisor, a State branch or State agency in any State outside the foreign bank’s home State if—

“(A) the establishment and operation of a branch or agency is expressly permitted by the State in which the branch or agency is to be established; and

“(B) in the case of a Federal or State branch, the branch receives only such deposits as would be permissible for a corporation organized under section 25A of the Federal Reserve Act.”

1994—Subsec. (a). Pub. L. 103–328, §§ 104(a), 107(f), inserted heading and substituted provisions consisting of pars. (1) to (9) for former provisions relating to limitations on interstate banking by foreign banks.

Subsec. (b). Pub. L. 103–328, § 104(b), inserted at end “Notwithstanding subsection (a), a foreign bank may continue to operate, after September 29, 1994, any Federal branch, State branch, Federal agency, State agency, or commercial lending company subsidiary which such bank was operating on the day before September 29, 1994, to the extent the branch, agency, or subsidiary continues, after September 29, 1994, to engage in operations which were lawful under the laws in effect on the day before September 29, 1994.”

Subsec. (c). Pub. L. 103–328, § 104(d), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “For the purposes of this section, the home State of a foreign bank that has branches, agencies, subsidiary commercial lending companies, or subsidiary banks, or any combination thereof, in more than one State, is whichever of such States is so determined by election of the foreign bank, or, in default of such election, by the Board.”

Subsec. (d). Pub. L. 103–328, § 104(c), added subsec. (d).