The major legislation controlling the operation of foreign banks in the U.S.

Question

Quizplus · Accepted Answer

The major legislation controlling the operation of foreign banks in the U.S. specifies that foreign branch banks operating in the U.S. must comply with U.S. banking regulations just like U.S. banks. This is to ensure fair competition and prevent the exploitation of regulatory loopholes by foreign banks. The option B is not accurate as foreign branch banks operating in the U.S. are subject to U.S. laws and regulations, not their country-of-origin banking regulations. Option C is partially correct as "shell" branches are illegal for foreign banks, but not for U.S. banks. Therefore, the correct answer is A.

The Major Legislation Controlling the Operation of Foreign Banks in the U.S