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12 U.S.C. § 3904a — Additional reserve requirements
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Each appropriate Federal banking agency shall review the exposure to risk of United States banking institutions arising from the medium- and long-term loans made by such institutions that are outstanding to any highly indebted country. Each agency shall provide direction to such institutions regarding additions to general reserves maintained by each banking institution for potential loan losses and special reserves required by such agency arising from such review.
**(b) Determination of institutional exposure to risk** In determining the exposure of an institution to risk for purposes of subsection (a), the appropriate Federal banking agency—
(1) shall determine whether any country exposure that is, and has been for at least 2 years, rated in the category “Other Transfer Risk Problems” or the category “Substandard” by the Interagency Country Exposure Review Committee should be reevaluated;
(2) may exempt, in full or in part, from reserve requirements established pursuant to subsection (a), any loan—
(A) to a country that enters into a debt reduction, debt service reduction, or financing program with its bank creditors that is supported by the International Bank for Reconstruction and Development or the International Monetary Fund; or
(B) secured, in whole or in part, by appropriate collateral for payment of interest or principal;
(3) take into account any other factors which bear on such exposure and the particular circumstances of the institution; and
(4) shall consider as indicators of risk, where appropriate, the average reserve levels maintained by or required of banking institutions in foreign countries and secondary market prices for such loans.
**(c) Timing and report**
(1) **Determined by agency** — Except as provided in paragraph
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Source location: Title 12, Chapter 40, § 3904a; chapter-040-international-lending-supervision.md
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**(a) In general** Each appropriate Federal banking agency shall review the exposure to risk of United States banking institutions arising from the medium- and long-term loans made by such institutions that are outstanding to any highly indebted country. Each agency shall provide direction to such institutions regarding additions to general reserves maintained by each banking institution for potential loan losses and special reserves required by such agency arising from such review.
**(b) Determination of institutional exposure to risk** In determining the exposure of an institution to risk for purposes of subsection (a), the appropriate Federal banking agency—
(1) shall determine whether any country exposure that is, and has been for at least 2 years, rated in the category “Other Transfer Risk Problems” or the category “Substandard” by the Interagency Country Exposure Review Committee should be reevaluated;
(2) may exempt, in full or in part, from reserve requirements established pursuant to subsection (a), any loan—
(A) to a country that enters into a debt reduction, debt service reduction, or financing program with its bank creditors that is supported by the International Bank for Reconstruction and Development or the International Monetary Fund; or
(B) secured, in whole or in part, by appropriate collateral for payment of interest or principal;
(3) take into account any other factors which bear on such exposure and the particular circumstances of the institution; and
(4) shall consider as indicators of risk, where appropriate, the average reserve levels maintained by or required of banking institutions in foreign countries and secondary market prices for such loans.
**(c) Timing and report**
(1) **Determined by agency** — Except as provided in paragraph (3), each appropriate Federal banking agency shall determine the timing of any addition to reserves required by subsection (a).
(2) **Report** — Each appropriate Federal banking agency shall include in each report required to be made under section 3912(d) 11 See References in Text note below. of this title after 1989 a report on the actions taken pursuant to this section.
(3) **Deadline** — Each Federal agency required to undertake a review described in subsection (a) shall complete the review not later than December 31, 1990.
**(d) “Highly indebted country” defined** As used in this section, the term “highly indebted country” means any country designated as a “Highly Indebted Country” in the annual World Debt Tables most recently published by the International Bank for Reconstruction and Development before December 19, 1989.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) It is the policy of the Congress to assure that the economic health and stability of the United States and the other nations of the world shall not be adversely affected or threatened in the future by imprudent lending practices or inadequate supervision.
(2) This shall be achieved by strengthening the bank regulatory framework to encourage prudent private decisionmaking and by enhancing international coordination among bank regulatory authorities.
**(b)** The Federal banking agencies shall consult with the banking supervisory authorities of other countries to reach understandings aimed at achieving the adoption of effective and consistent supervisory policies and practices with respect to international lending.
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Federal law — U.S. Code and appendices · legal_authorities
(a) United States development cooperation policy
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Policy goals** The United States Government, in connection with its voice and vote in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the African Development Fund, the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, and the International Monetary Fund, shall advance the cause of human rights, including by seeking to channel assistance toward countries other than those whose governments engage in—
(1) a pattern of gross violations of internationally recognized human rights, such as torture or cruel, inhumane, or degrading treatment or punishment, prolonged detention without charges, or other flagrant denial to life, liberty, and the security of person; or
(2) provide refuge to individuals committing acts of international terrorism by hijacking aircraft.
**(b) Policy considerations for Executive Directors of institutions in implementation of duties** Further, the Secretary of the Treasury shall instruct each Executive Director of the above institutions to consider in carrying out his duties:
(1) specific actions by either the executive branch or the Congress as a whole on individual bilateral assistance programs because of human rights considerations;
(2) the extent to which the economic assistance provided by the above institutions directly benefit the needy people in the recipient country;
(3) whether the recipient country—
(A) is seeking to acquire unsafeguarded special nuclear material (as defined in [section 6305(8) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section6305/8&num=0&edition=prelim)) or a nuclear explosive device (
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Federal law — U.S. Code and appendices · legal_authorities
Page 1575
TITLE 12—BANKS AND BANKING
§ 3904a
(B) to the extent determined by the appro-
priate Federal banking agency, any agency
or branch of a foreign bank, and any com-
mercial lending company owned or con-
trolled by one or more foreign banks or com-
panies that control a foreign bank as those
terms are defined in the International Bank-
ing Act of 1978 [12 U.S.C. 3101 et seq.]. The
term ‘‘banking institution’’ shall not in-
clude a foreign bank.
(Pub. L. 98–181, title I [title IX, § 903], Nov. 30,
1983, 97 Stat. 1278.)
Editorial Notes
REFERENCES IN TEXT
Section 25(a) of the Federal Reserve Act, referred to
in pars. (1) and (2)(A), which is classified to subchapter
II (§ 611 et seq.) of chapter 6 of this title, was renum-
bered section 25A of that act by Pub. L. 102–242, title I,
§ 142(e)(2), Dec. 19, 1991, 105 Stat. 2281. Section 25 of the
Federal Reserve Act is classified to subchapter I (§ 601
et seq.) of chapter 6 of this title.
The International Banking Act of 1978, referred to in
par. (2)(B), is Pub. L. 95–369, Sept. 17, 1978, 92 Stat. 607,
which enacted chapter 32 (§ 3101 et seq.) and sections
347d and 611a of this title, amended sections 72, 378, 614,
615, 618, 619, 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823,
1828, 1829b, 1831b, and 1841 of this title, and enacted pro-
visions set out as notes under sections 247, 611a, and
3101 of this title and formerly set out as notes under
sections 36, 247, and 601 of this title. For definitions, see
section 3101 of this title. For complete classification of
this Act to the Code, see Short Title note set out under
section 3101 of this title and Tables.
§ 3903. Strengthened supervision of international
lending
(a) Each appropriate Federal banking agency
shall evaluate banking institution fo
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