12 U.S.C. § 3901 — Congressional declaration of policy

Page 1574 TITLE 12—BANKS AND BANKING § 3901 1 See References in Text note below. Sec. 3902. Definitions. 3903. Strengthened supervision of international lending. 3904. Reserves. 3904a. Additional reserve requirements. 3905. Accounting for fees on international loans. 3906. Collection and disclosure of international lending data. 3907. Capital adequacy. 3908. Foreign loan evaluations. 3909. General authorities. 3910. Audit authority of Government Account- ability Office. 3911. Equal representation for Federal Deposit In- surance Corporation and the Office of Thrift Supervision. 3912. Repealed. § 3901. Congressional declaration of policy (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 in- adequate supervision. (2) This shall be achieved by strengthening the bank regulatory framework to encourage pru- dent private decisionmaking and by enhancing international coordination among bank regu- latory 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 con- sistent supervisory policies and practices with respect to international lending. (Pub. L. 98–181, title I [title IX, § 902], Nov. 30, 1983, 97 Stat. 1278.) Statutory Notes and Related Subsidiaries SHORT TITLE OF 1989 AMENDMENT Pub. L. 101–240, title IV, § 401, Dec. 19, 1989, 103 Stat. 2501, provided that: ‘‘This title [enacting section 3904a of this title and enacting provisions set out as notes under section 3904a of this title and section 2291 of Title 22, Foreign Relations and Intercourse] may be cited as the ‘Foreign Debt Reserving Act of 1989’.’’ SHORT TITLE Pub. L. 98–181, title I [title IX, § 901], Nov. 30, 1983, 97 Stat. 1278, provided that: ‘‘This title [enacting this chapter] may be cited as the ‘International Lending Su- pervision Act of 1983’.’’ ENCOURAGEMENT OF DEBT-FOR-DEVELOPMENT SWAPS THROUGH LOCAL CURRENCY REPAYMENT Pub. L. 101–240, title V, § 531, Dec. 19, 1989, 103 Stat. 2513, provided that: ‘‘(a) STATEMENT OF POLICY.—It is the sense of the Congress that— ‘‘(1) debt-for-development swaps, where payment is made in local currency at the free market rate, serve a useful purpose by providing banking institutions with constructive opportunities for the reduction of the external debt of highly indebted developing coun- tries in a process that involves the participation of private, nonprofit groups in providing a stimulus to the economic and social development of such devel- oping countries; ‘‘(2) debt-for-development swaps provide highly in- debted developing countries with a creative method of reducing external debt burdens, while promoting their economic growth and restructuring objectives; ‘‘(3) banking institutions should give careful con- sideration to engaging in such swaps as one means of strengthening overall loan portfolios through the re- duction of high external debt burdens while expand- ing economic opportunities through private sector initiatives; and ‘‘(4) in order to avoid any bias against such swaps in the regulatory framework applicable to the finan- cial reporting of banking institutions, where pay- ment is made in local currency at the free market rate, appropriate recognition of the fair market ex- change value of the currency so received should be made. ‘‘(b) NOTIFICATION RELATING TO LOCAL CURRENCY RE- PAYMENT THROUGH DEBT-FOR-DEVELOPMENT SWAPS.— Before the end of the 6-month period beginning on the date of the enactment of this section [Dec. 19, 1989], each appropriate Federal banking agency shall adopt uniform guidelines that will effectuate the policy set forth in subsection (a) concerning the regulatory framework and accounting treatment of debt-for-devel- opment swaps involving repayment in local currency at the free market rate. For the purpose of such guide- lines, the impact of such swaps on reported loan loss re- serves shall be determined by valuing currency re- ceived in such swaps at fair market exchange value. ‘‘(c) DEFINITIONS.—As used in this section: ‘‘(1) APPROPRIATE FEDERAL BANKING AGENCY.—The term ‘appropriate Federal banking agency’ has the meaning given such term in section 903(1) of the International Lending Supervision Act of 1983 [12 U.S.C. 3902(1)]. ‘‘(2) BANKING INSTITUTION.—The term ‘banking in- stitution’ has the meaning given such term in section 903(2) of the International Lending Supervision Act of 1983. ‘‘(3) DEBT-FOR-DEVELOPMENT SWAP.—The term ‘debt- for-development swap’ has the meaning given such term in section 1608(b)(2) of the International Finan- cial Institutions Act [22 U.S.C. 262p–4c(b)(2)]. ‘‘(4) HIGHLY INDEBTED COUNTRY.—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 the date of the enactment of this section [Dec. 19, 1989].’’ § 3902. Definitions For purposes of this chapter— (1) the term ‘‘appropriate Federal banking agency’’ has the same meaning given such term in section 1813(q) of this title, except that for purposes of this chapter such term means the Board of Governors of the Federal Reserve System for— (A) bank holding companies and any nonbank subsidiary thereof; (B) Edge Act corporations organized under section 25(a) 1 of the Federal Reserve Act [12 U.S.C. 611 et seq.]; and (C) Agreement Corporations operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.]; and (2) the term ‘‘banking institution’’ means— (A)(i) an insured bank as defined in section 1813(h) of this title or any subsidiary of an insured bank; (ii) an Edge Act corporation organized under section 25(a) 1 of the Federal Reserve Act [12 U.S.C. 611 et seq.]; and (iii) an Agreement Corporation operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.]; and