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Title 12 — Banks and BankingRelease 119-73

§604a Regulations authorizing exercise by foreign branches of usual powers of local banks; restrictions

Title 12 › Chapter CHAPTER 6— - FOREIGN BANKING › Subchapter SUBCHAPTER I— - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS › § 604a

Last updated Apr 6, 2026|Official source

Summary

The Board of Governors of the Federal Reserve System can make rules letting a bank’s foreign branch do the usual local banking work where it operates, as long as the branch follows any conditions the Board sets. Those rules cannot let a foreign branch run a general goods business or underwrite, sell, or distribute securities, except in limited ways the Board allows for securities issued by any “foreign state” (as defined in section 632).

Full Legal Text

Title 12, §604a

Banks and Banking — Source: USLM XML via OLRC

Regulations issued by the Board of Governors of the Federal Reserve System under this subchapter, in addition to regulating powers which a foreign branch may exercise under other provisions of law, may authorize such a foreign branch, subject to such conditions and requirements as such regulations may prescribe, to exercise such further powers as may be usual in connection with the transaction of the business of banking in the places where such foreign branch shall transact business. Such regulations shall not authorize a foreign branch to engage in the general business of producing, distributing, buying or selling goods, wares, or merchandise; nor, except to such limited extent as the Board may deem to be necessary with respect to securities issued by any “foreign state” as defined in section 632 of this title, shall such regulations authorize a foreign branch to engage or participate, directly or indirectly, in the business of underwriting, selling, or distributing securities.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in text, was in the original “this section”, meaning section 25 of act Dec. 23, 1913, which is classified to this subchapter (§ 601 et seq.). Codification Section is comprised of the seventh undesignated par. of section 25 of act Dec. 23, 1913, which comprises this subchapter. For classification of other pars. of section 25 of this Act, see Codification note under section 601 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 604a

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73