Supervisory Examinations of International Banking Facilities Need to Be Improved

摘要

The Federal Reserve authorized U.S.-based banks to establish International Banking Facilities (IBFs) to attract international banking business. IBFs were granted exemptions from certain requirements levied on banks; however, the Federal Reserve imposed other restrictions to prevent IBF activities from influencing the domestic money supply. The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are responsible for examining IBFs for compliance with the restrictions. GAO found that these agencies did not ensure that all IBF transactions are conducted in compliance with prescribed regulations. GAO recommendations are included.