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![handle is hein.gao/gaobadxsx0001 and id is 1 raw text is:
DOCURENT RESURE
00321 - [A10517931
[Federal Supervision of the International Operations of Banks].
March 24, 1977. 9 pp.
Testimcny before the Hcuse Committee on Banking, Currency and
Housing: Financial Institutions Supervision, Regulation and
Insurance Subcommittee; by Fred D. Layton, Director, Task Force
on Federal Supervision of Banks.
Issue A- ea: Accounting and Financial Reporting (2800).
Contact: Office of the Comptroller General.
Budget Function: International Affairs: International Financial
Prcgrams (155).
Organization Concerned: Federal Reserve System; Federa, Deposit
Irsurance Corp.; Federal Reserve System: Board of Governors;
Office of the Comptroller of the Currency.
Congressional Relevance: House Committee on Banking, Currency
ad Hou!-ng: Financial Institutions Superv!sion, Regulation
and Insurance Subcommittee.
Only about 130 of the 14,000 U.S. banks had overseas
branches and/or foreign subsidiaries at the end of 1975, and
most of these are either national banks supervised by the
Compticller of the Currency or State member banks supervised by
the Federal Reserve. GAO reviewed the bank examination repoits
on 18 national banks and 12 State member banks having
substantial international operations. The mcst prevalent
problems in international operations found by examiners were: a
high percentage of classified assets; inadequate controls over
foreign exchange operations; and inadequate overall internal
controls. The Federal Reserve Board cf Governors and the
Ccmptrcllcr of the Currency need to use all available
information to develop and nse a single approach for classifying
loans subject to country risk. Procedures should be
implemented to examine (where permitted by the ccuntry involved)
major foreign branches and subsidiaries onsite. 7hey should be
examined periodically and whenever adequate informaticn about
their activities is not available ai the home office. The
Federal Peserve Board of Governors Pand the Ccpt.ccller of the
Currency should utilize each other's examiners tc cut expenses
for foreign examinations. Some clarifying legislation on the
interagency use of exasiners might be necessary. (Author/QM)](ViewImageLocal?handle=hein.gao/gaobadxsx0001&div=1&collection=&method=preview&ext=.png&size=3)