DEFINITION of 'International Banking Act of 1978'

Federal banking legislation that put all domestic bank branches and agencies of foreign banks under the control of U.S. banking regulators. The International Banking Act mandated that foreign bank branches located in the U.S. adhere to the same regulations as U.S. banks.

BREAKING DOWN 'International Banking Act of 1978'

The international banking act provided FDIC insurance for domestic branches of foreign banks. It also required them to maintain a certain level of non-interest-bearing reserve account balances and also submit to regular audits. These foreign branches are subject to the same limitations as domestic banks.

RELATED TERMS
  1. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  2. McFadden Act

    Federal legislation that gave individual states the authority ...
  3. Shell Branch

    A branch location of a U.S. chartered bank located outside the ...
  4. Branch Manager

    An executive who is in charge of the branch office of a bank ...
  5. Branch Accounting

    An accounting system in which separate accounts are maintained ...
  6. Limited Service Bank

    Any type of banking business facility that is located separately ...
Related Articles
  1. Personal Finance

    U.S. Banks Struggle To Reduce Branches (JPM)

    The efforts by U.S. banks to get lean by reduction in branch network are getting challenged by customers who won’t give up regular visits to the branch
  2. Investing

    Bank of America Tests Automated Branches

    Bank of America offers mortgage, credit card and auto loan service through virtual channels at its new smaller branches.
  3. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  4. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  5. Insights

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  6. Investing

    Introduction To The Chinese Banking System

    As China steps into a greater role in the global economic system, their banking system continues to evolve.
  7. Personal Finance

    Banking Has Changed: What Does It Mean For Consumers?

    Banks have long been leading spenders on technological innovations. Learn the key changes in the banking industry and what institution is right for you.
  8. Personal Finance

    How Will Bank Regulation Affect British Banks?

    We look at the proposed changes to Britain's banking system, and see whether it will be able to stay competitive.
RELATED FAQS
  1. What accounting and regulatory standards is a correspondent bank subject to?

    Read about the regulations imposed on correspondent banks in the United States from the Anti-Money Laundering Act and Regulation ... Read Answer >>
  2. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  3. What are key government regulations that affect investing in the banking sector?

    Discover how the global financial crisis of 2008 changed the face of banking in the United States and around the world by ... Read Answer >>
  4. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  5. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  6. What role does a correspondent bank play in an international transaction?

    Understand what a correspondent bank is and how it operates to facilitate currency exchange and financial transactions between ... Read Answer >>
Hot Definitions
  1. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
  2. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  3. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
  4. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
  5. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  6. Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...
Trading Center