In the past few years, international banking activities of U.S. financial institutions have increased dramatically and have attracted considerable interest. This growth has affected the examination responsibilities of the federal bank regulatory agencies. As part of an inquiry into international banking, the federal supervision of two types of financial institutions engaged in international banking is reviewed: Edge Act corporations and federally licensed branches and agencies of foreign banks. This report recommends that the Congress repeal certain statutory requirements to examine these institutions which prevent the Federal Reserve and the Office of the Comptroller of the Currency from using their examination resources more efficiently. It also discusses the Federal Reserve's practice of not charging Edge Act corporations for examination costs as required by law. The review was conducted pursuant to the Federal Banking Agency Audit Act (31 U.S.C. 67).
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