The links in this section mainly concern money market assets and securities purchased by banks for their own accounts. The money market generally refers to short-term credit instrument markets, such as commercial securities, bank acceptances, tradable certificates of deposit, pension transactions and federal funds. The Federal Audit Council of Financial Institutions (FFIEC) has amended its statement of principle on the pension transactions of custodian institutions with securities dealers and others. The policy statement provides insured deposit-checkers with guidance for the safe and sound conclusion of pension transactions. This document also replaces the previous policy statement, OCC Banking Circular 210, Repurchase Agreements of Depository Institutions with Securities Dealers and Others, of October 31, 1985. (3) Exceptions. To determine the amount of the DEC, the OCC excludes the debts of an international banking facility (IBF) to third parties and a federal branch of a foreign bank to an IBF. The CCO may exclude debts on a case-by-case basis from repurchase transactions. (d) the deposit regime. A foreign bank should require its custodian bank to separate its DEC from the books and registrations of the custodian bank.
Deposits and obligations covered in this section) that are held with a custodian bank to meet the DEE requirement of a foreign bank: (1) Without the prior approval of the OCC, cannot be reduced to the minimum required for that branch or agency, but under no circumstances below the legal minimum; v) other similar assets approved by the OCC to be included in the DCE. (2) Calculation. The total amount of the consolidated CED continues to be formally calculated. b) increase in capital equivalent inflows. For prudential or regulatory reasons, the CCO may require, on a case-by-case or other basis, that a foreign bank increase its DEC above the minimum amount. For example, the CCO may require an increase if a federal institution or a foreign bank agency increases its leverage by creating, acquiring or providing maintenance for an operating subsidiary. (2) Legal requirements. The agreement with the custodian bank regarding the holding of the DEC and the amount of the deposit must be in accordance with the requirements set out in Section 4 (g) of the IBA, 12 U.S.C 3102 (g). When a foreign bank has more than one branch or federal agency in a state, it determines the DEC and the amount of debts that require capital equivalency coverage on an aggregate basis for all branches or federal branches of the foreign bank in that state. The guidelines attached to this bulletin continue to apply to federal savings bank associations.
Definitive inter-institutional policy statement on financing and managing liquidity risks (1) Deposit and consolidation. As expected in 12 U.S.C 3102 (g), a foreign bank with a branch or federal agency deposits its CED into an account in a bank located in the state where the federal institution or agency is located. To this end, it is considered that this deposit bank is located in the states where it has its head office or branch. A foreign bank with branches or federal agencies in more than one state can consolidate some or all of its CEDs to such an account.