article: SECTION 1. SHORT TITLE. This Act may be cited as the ``National Treatment in Banking Act of 1994''. SEC. 2. FAILURE TO ACCORD NATIONAL TREATMENT TO UNITED STATES BANKING ORGANIZATIONS. (a) Identifying Countries That May Be Denying National Treatment to United States Banking Organizations.--The Secretary of the Treasury shall identify, after consultation with the Federal banking agencies, the extent to which foreign countries may be denying national treatment to United States banking organizations-- (1) based on information relating to banking in the most recent report under section 3602 of the Omnibus Trade and Competitiveness Act of 1988 (or the most recent update of such report); or (2) based on more recent information that the Secretary considers appropriate. (b) Assessing Whether Possible Denial of National Treatment May Be Having a Significant Adverse Effect.-- (1) In general.--The Secretary shall assess, after consultation with the Federal banking agencies, whether the possible denial of national treatment to United States banking organizations by a foreign country identified under subsection (a) may be having a significant adverse effect on such organizations. (2) Factors to be considered.--In making any assessment under paragraph (1), the Secretary shall consider appropriate factors, including the following: (A) The extent of United States trade with and investment in the foreign country, the size of the foreign country's markets for banking services, and the extent to which United States banking organizations operate or seek to operate in those markets. (B) The importance of operations by United States banking organizations in the foreign country to the export of goods and services by United States firms to such country. (C) The extent to which the foreign country provides in advance to United States banking organizations a written draft of any measure of general application that the country proposes to adopt, such as regulations, guidelines, or other policies regarding new products and services, in order to allow an opportunity for such organizations to comment on the measure and for such comments to be taken into account by the foreign country. (D) The extent to which the foreign country-- (i) makes available, in writing, to United States banking organizations the foreign country's requirements for completing any application relating to the provision of financial services by any such organization; (ii) applies published, objective standards and criteria in evaluating any such application from any United States banking organization; and (iii) renders administrative decisions relating to any such application within a reasonable period of time. (3) Solicitation of comments.--Before making any assessment under paragraph (1), the Secretary may solicit comments concerning the effect of the possible denial of national treatment on United States banking organizations from interested parties. (c) Publication.--The Secretary may publish a notice in the Federal Register of-- (1) any assessment made under subsection (b)(1) with respect to any country; and (2) any change made with respect to any assessment under such subsection which was previously published in the Federal Register. (d) Definitions.--The following definitions shall apply for purposes of this section: (1) Banking organization.-- (A) In general.--The term ``banking organization'' means any bank, any bank holding company (including any company required to file reports pursuant to section 4(f)(6) of the Bank Holding Company Act of 1956), and any savings and loan holding company (as such term is defined in section 10(a)(1)(D) of the Home Owners' Loan Act). (B) Banking terms.--For purposes of this paragraph, the terms ``bank'' and ``bank holding company'' have the same meaning as in section 2 of the Bank Holding Company Act of 1956. (2) Federal banking agencies.--The term ``Federal banking agencies'' has the same meaning as in section 3(z) of the Federal Deposit Insurance Act. (3) National treatment.--The term ``national treatment'' means, with respect to any foreign country, treatment that offers United States banking organizations the same competitive opportunities (including effective market access) in such country as are available to the foreign country's domestic banking organizations in like circumstances. (4) Secretary.--The term ``Secretary'' means the Secretary of the Treasury. SEC. 3. APPLICATIONS BY FOREIGN BANKS AND OTHER PERSONS OF A FOREIGN COUNTRY. (a) Applications Under the International Banking Act of 1978.-- Section 7(d) of the International Banking Act of 1978 (12 U.S.C. 3105(d)) is amended by adding at the end the following new paragraph: ``(6) Additional standard.--In acting on any application under paragraph (1), the Board shall take into account whether the Secretary of the Treasury has published a notice, in accordance with section 2(c) of the National Treatment in Banking Act of 1994, that the possible denial of national treatment to United States banking organizations by the foreign bank's home country identified under section 2(a) of such Act may be having a significant adverse effect on such organizations.''. (b) Applications Under the Bank Holding Company Act of 1956.-- Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844) is amended by adding at the end the following new subsection: ``(g) Applications by a Foreign Bank.--In considering any application or notice under section 3 or 4 by any foreign bank (as defined in section 1(b) of the International Banking Act of 1978), the Board shall take into account whether the Secretary of the Treasury has published a notice, in accordance with section 2(c) of the National Treatment in Banking Act of 1994, that the possible denial of national treatment to United States banking organizations by the foreign bank's home country identified under section 2(a) of such Act may be having a significant adverse effect on such organizations.''. (c) Amendment to Change in Bank Control Act.--Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)) is amended by adding at the end the following new paragraph: ``(19) Notice by a person of a foreign country.-- ``(A) In general.--In considering a notice under this subsection by a person of a foreign country, the appropriate Federal banking agency shall take into account whether the Secretary of the Treasury has published a notice, in accordance with section 2(c) of the National Treatment in Banking Act of 1994, that the possible denial of national treatment to United States banking organizations by such person's home country identified under section 2(a) of such Act may be having a significant adverse effect on such organizations. ``(B) Person of a foreign country defined.--For purposes of this paragraph, the term `person of a foreign country' means-- ``(i) any entity that-- ``(I) is organized under the laws of the foreign country, or ``(II) has the entity's principal place of business in the foreign country; ``(ii) an individual who-- ``(I) is a citizen of the foreign country, or ``(II) is domiciled in the foreign country; and ``(iii) any person that is, directly or indirectly, under the control of any entity or individual described in clause (i) or (ii).''. (d) Amendment to National Bank Act.--Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended by adding at the end the following new subsection: ``(i) Application by a Bank Which Is a Person of a Foreign Country.--In considering any application under this section by any bank which is a person of a foreign country (as defined in section 7(j)(19)(B) of the Federal Deposit Insurance Act), the Comptroller of the Currency shall take into account whether the Secretary of the Treasury has published a notice, in accordance with section 2(c) of the National Treatment in Banking Act of 1994, that the possible denial of national treatment to United States banking organizations by such person's home country identified under section 2(a) of such Act may be having a significant adverse effect on such organizations.''. (e) Amendment to Federal Deposit Insurance Act.--Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following new paragraph: ``(12) Application by a bank which is a person of a foreign country.--In considering any merger transaction under this subsection involving any bank which is a person of a foreign country (as defined in section 7(j)(19)(B)), the responsible agency shall take into account whether the Secretary of the Treasury has published a notice, in accordance with section 2(c) of the National Treatment in Banking Act of 1994, that the possible denial of national treatment to United States banking organizations by such person's home country identified under section 2(a) of such Act may be having a significant adverse effect on such organizations.''. (f) Amendment to Federal Reserve Act.--The 3d undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is amended in the proviso by inserting ``, including section 5155(i) of the Revised Statutes,'' after ``limitations and restrictions''. SEC. 4. CONSISTENCY WITH BILATERAL AND MULTILATERAL AGREEMENTS. No authority under this Act or any amendment made by this Act to any other law may be used to take any action with respect to a foreign country which is inconsistent with any bilateral or multilateral agreement that governs financial services in which such country is obligated to provide national treatment for United States banking organizations. Passed the House of Representatives September 30, 1994. Attest: DONNALD K. ANDERSON, Clerk.
summary: National Treatment in Banking Act of 1994 - Directs the Secretary of the Treasury to: (1) identify the extent to which foreign countries may be denying national treatment to U.S. banking organizations; and (2) assess whether the possible denial of national treatment to such banking organizations may be having a significant adverse effect upon them. Authorizes the Secretary to publish notice of such assessments in the Federal Register. Amends the International Banking Act of 1978, the Bank Holding Company Act of 1956, the Federal Deposit Insurance Act, and the National Bank Act to direct the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency to take into account whether the Secretary has published such notice in the Federal Register when considering applications by foreign banks or other persons of a foreign country. Declares that no authority under this Act or any amendment it makes to any other law may be used to take any action with respect to a foreign country which is inconsistent with any bilateral or multilateral agreement that governs financial services in which such country is obligated to provide national treatment for U.S. banking organizations.