Foreign Bank Supervision Enhancement Act - FBSEA

AAA

DEFINITION of 'Foreign Bank Supervision Enhancement Act - FBSEA'

An act enacted on December 19, 1991 to increase the Federal Reserve's authority over foreign banks seeking entry into the United States. Part of the Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991. The act enabled the Fed to not only supervise authorization of foreign banks applying for operating ability in the U.S., but also existing foreign banks already operating within the country.

INVESTOPEDIA EXPLAINS 'Foreign Bank Supervision Enhancement Act - FBSEA'

Foreign banks were able to operate within the United States free of federal regulation until the International Banking Act of 1978 was passed. When enacted, the act limited foreign banks' geographic expansion and banking activities to similar U.S.-based banks and required foreign banks to carry adequate reserves. By the time the Federal Bank Supervision Enhancement Act was passed, more than 280 foreign banks were operating in the U.S., and held more than $626 billion in assets, or 18% of all banking assets in the U.S.

RELATED TERMS
  1. Correspondent Bank

    A financial institution that provides services on behalf of another, ...
  2. International Banking Act of 1978

    Federal banking legislation that put all domestic bank branches ...
  3. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Federal Reserve System - FRS

    The central bank of the United States. The Fed, as it is commonly ...
  6. Bank Insurance

    A guarantee by the Federal Deposit Insurance Corporation (FDIC) ...
Related Articles
  1. Fundamental Analysis

    What is the difference between cost of equity and cost of capital?

    Read about some of the differences between a company's cost of equity and its cost of capital, two measures of its required returns on raised capital.
  2. Economics

    In what instances is quantitative easing used?

    Discover when, how and why the Federal Reserve and other central banks turn to quantitative easing to stimulate economic activity.
  3. Fundamental Analysis

    Is depreciation only used for tangible assets?

    Learn if tangible assets can be depreciated, as well as what other assets are eligible for depreciation so you can account for them accurately.
  4. Fundamental Analysis

    What does a high weighted average cost of capital (WACC) signify?

    Find out what it means for a company to have a relatively high weighted average cost of capital, or WACC, and why this is important to lenders and investors.
  5. Fundamental Analysis

    How do intangible assets appear on a balance sheet?

    Understand how various types of intangible assets are handled in a company's accounting and which of them you can find on a company's balance sheet.
  6. Economics

    How does the Federal Reserve determine the discount rate?

    Learn about the several different kind of discount rates offered to banks and other depository institutions through the Federal Reserve's discount window.
  7. Trading Strategies

    How safe an investment is a certificate of deposit?

    Discover certificates of deposit, their basic makeup and numerous variations, and understand why they are some of the safest investments available.
  8. Fundamental Analysis

    What is the difference between operating cash flow and net income?

    Learn how net income is an income statement for a certain period of time, while cash flow shows inflows and outflows based on conversion of sales into cash.
  9. Fundamental Analysis

    How do I calculate dividend payout ratio from a balance sheet?

    Understand what the dividend payout ratio indicates and learn how it can be calculated using the figures from a company's balance sheet statement.
  10. Credit & Loans

    When is it necessary to get a letter of credit?

    Capitalize on assets and negate risks by using a letter of credit. Letters of credit are often requested for buying, selling or trading.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center