THE REGULATION OF UNITED-STATES BANKS OPERATIONS ABROAD

This article summarizes the statutory and regulatory framework that governs U.S. banks' overseas branches and subsidiaries, noting the differences between what is potentially permitted under the statutes and which activities are, in fact, permitted by Regulation K. In view of Europe 1992 and of the continuing development of strong banks and efficient financial markets throughout the advanced industrial world, the author suggests some reforms of federal statutes and/or regulations that might enable U.S. banks to be more effective competitors abroad.