CONDUCT AND COORDINATION OF EXAMINATIONS.

SEC. 203. CONDUCT AND COORDINATION OF EXAMINATIONS. (a) Authority of Board To Conduct and Coordinate Examinations.— Section 7(c) of the International Banking Act of 1978 (12 U.S.C. 3105(b)) is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Examination of branches, agencies, and affiliates.— “(A) In general.— The Board may examine each branch or agency of a foreign bank, each commercial lending company or bank controlled by 1 or more foreign banks or 1 or more foreign companies that control a foreign bank, and other office or affiliate of a foreign bank conducting business in any State. “(B) Coordination of examinations.— “(i) In general.— The Board shall coordinate examinations under this paragraph with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and appropriate State bank supervisors to the extent such coordination is possible. “(ii) Simultaneous examinations.— The Board may request simultaneous examinations of each office of a foreign bank and each affiliate of such bank operating in the United States. “(C) Annual on-site examination.— Each branch or agency of a foreign bank shall be examined at least once during each 12-month period (beginning on the date the most recent examination of such branch or agency ended) in an on-site examination. “(D) Cost of examinations.— The cost of any examination under subparagraph (A) shall be assessed against and collected from the foreign bank or the foreign company that controls the foreign bank, as the case may be.”; and (2) in paragraph (2), by inserting “Reporting requirements.—” before “Each branch”. (b) Coordination of Examinations.— Section 4(b) of the International Banking Act of 1978 (12 U.S.C. 3102(b)) is amended by adding at the end thereof the following new sentence: “The Comptroller of the Currency shall coordinate examinations of Federal branches and agencies of foreign banks with examinations 105 STAT. 2292conducted by the Board under section 7(c)(1) and, to the extent possible, shall participate in any simultaneous examinations of the United States operations of a foreign bank requested by the Board under such section.”. (c) Participation in Coordinated Examinations.— (1) In general.— Section 10(b) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)) is amended by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively, and by inserting after paragraph (4) the following new paragraph: “(5) Examination of insured state branches.— The Board of Directors shall— “(A) coordinate examinations of insured State branches of foreign banks with examinations conducted by the Board of Governors of the Federal Reserve System under section 7(c)(1) of the International Banking Act of 1978; and “(B) to the extent possible, participate in any simultaneous examination of the United States operations of a foreign bank requested by the Board under such section.”. (2) Technical and conforming amendment.— Paragraph (6) of section 10(b) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)) (as so redesignated under paragraph (1) of this subsection) by striking “or (4)” and inserting “(4), or (5)”.