Amendments to Part 322 of the Superintedent's Regulations
(Pledge of Assets and Maintenance of Assets By Licensed Foreign Banking Corporations in New York)
January 24, 2007
PLEDGE OF ASSETS AND MAINTENANCE OF ASSETS BY LICENSED FOREIGN BANKING CORPORATIONS IN NEW YORK
(Statutory authority: Banking Law, §§ 12, 202-b-, 204)
§ 322.1 Deposit of assets; amount of assets to be deposited.
(f) For a well-rated foreign banking corporation as defined in section 322.7 of this Part, the maximum amount required to be deposited pursuant to paragraph (a)(1) of this section shall be [capped at $400,000,000.], calculated according to the following schedule, as a percentage of average total liabilities for the previous month of such branch or branches or agency or agencies, including liabilities of an international banking facility maintained by such branch or branches or agency or agencies, but excluding amounts due and other liabilities to other offices, agencies, branches and affiliates as defined in section 322.6 of this Part, of such foreign banking corporation:
(1) one percent of the first $1 billion;
(2) ¾ of one percent of the next $4 billion;
(3) ½ of one percent of the next $5 billion;
(4) ¼ of one percent of any additional liabilities;
(5) provided, however, that in no event shall the maximum amount required to be deposited hereunder exceed one hundred million dollars ($100,000,000).
§ 322.2 Assets that may be deposited; conditions and limitations.
(b) Unless the superintendent specifically permits otherwise, the followingconditions and limitations shall apply to the asset pledge:
(1) All assets must be payable in the United States in United States dollars.
(2) Additional assets may not comprise more than 50 percent of the foreign banking corporation's total asset pledge requirement.
(3) For all foreign banking corporations, [except as provided in paragraph (4) of this subdivision, additional assets must be accorded the highest rating of a rating service designated by the Banking Board pursuant to section 61.1 of this Title. In the event that an asset is rated by more than one designated rating service, it must have the highest rating of each.]
[(4) For a well-rated foreign banking corporation, as defined in section 322.7 of this Part,] additional assets may include assets that have been accorded an investment grade rating of a rating service designated by the Banking Board pursuant to section 61.1 of this Title. In the event that an asset is rated by more than one designated rating service, it must have received at least an investment grade rating from each.
(4) No foreign banking corporation may pledge any obligations issued or guaranteed by an entity located or domiciled in, or any governmental entity of, the home country of such foreign banking corporation (same-country obligor)[, provided that a foreign banking corporation may continue to pledge same-country certificates of deposits (CDs) during the one-year period following the date of enactment of this provision in an aggregate dollar amount not to exceed the aggregate dollar amount of same-country CDs it had pledged on the date of enactment].
(5) With respect to any asset, the superintendent may determine that, for purposes of this Part, such asset shall be valued at other than face value, or shall be held in such form or subject to such conditions as the superintendent may prescribe. The superintendent may expressly disallow one or more otherwise eligible assets, either for all institutions or for specific institutions. All assets shall be subject to any additional conditions or limitations as determined by the superintendent with respect to such assets.