1/24/07 N.Y. St. Reg. BNK-44-06-00010-A
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of Part 322 of Title 3 NYCRR.
Statutory authority:
Banking Law, section 202-b(1)
Subject:
Pledging of assets in New York (“asset pledge”) by foreign banking corporations operating a branch or agency in New York.
Purpose:
To relieve foreign banks from current assets pledge requirement set at one percent of total third-party liabilities with a cap of $400 million for “well-rated” foreign branches and agencies. The proposal would lower the cap to $100 million, introduce a sliding scale reducing the requirement for most “well rated” branches and agencies with liabilities subject to pledge of over $1 billion and allows all institutions wider variety of assets eligible for up to½ of the pledge.
Text or summary was published
in the notice of proposed rule making, I.D. No. BNK-44-06-00010-P, Issue of November 1, 2006.
Final rule as compared with last published rule:
No changes.
Text of rule and any required statements and analyses may be obtained from:
Sam L. Abram, Secretary to the Banking Board, Banking Department, One State St., New York, NY 10004-1417, (212) 709-1658, e-mail:
sam.abram@banking.state.ny.usAssessment of Public Comment
Two comments were received, one from a foreign banking corporation licensed to operate a branch in New York and one from an association of international banking institutions. Both commenters supported the proposal. Accordingly, no changes in the proposed amendments have been made.
The foreign banking corporation indicated that the amendments would reduce the cost of compliance with the Department's asset pledge requirement and expressed a desire for further discussions with the Department on reducing the maximum amount required to be pledged under the regulation.
The industry association urged the Superintendent to be flexible in making her determination as to whether an institution qualifies as a “well rated foreign banking corporation” as defined in Section 322.7 of the Superintendent's Regulations, and therefore whether it is an institution which may calculate its asset pledge requirement using the sliding scale and maximum amount limitation in accordance with amended Section 322.1.
The association believes that an institution which is a “financial holding company” (FHC) under the federal Bank Holding Company Act of 1956, as amended, should also be deemed “well rated” under Section 322.7., and that the Superintendent could also deem an institution “well rated” which is not an FHC.
The association also expressed a desire for further discussion of the asset pledge requirement once the Department and the affected institutions gain experience with the amended regulation.
