4. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences. Present your summary in class.

institutions

impact

banks

apply

operating

legislation

engage

branches

responsibilities

conduct

activities

powers

Us Activities of Foreign Banking Organizations

The International Banking Act of 1978 (IBA) provided for federal regulation of the US operations of foreign banks and granted important new responsibilities to the Federal Reserve for the supervision and regulation of such operations. Enactment of this __________ followed rapid growth in the activities of foreign banks in United States and an increase in their competitive _________ upon domestic markets.

The IBA created a federal regulatory and supervisory structure for the US branches and agencies of foreign __________, similar to that applicable to US banks. This policy of “national treatment” promotes competitive equality between domestic and foreign banks operating in this country the same __________ and subjecting them to the same restrictions and obligations that _________ to US banks. As part of the implementation of national treatment, the IBA limited expansion of interstate deposit-taking and domestic non-banking ____________ of foreign banks, provided the option of federal licensing for agencies and branches that _________ in retail deposit-taking.

At the federal level, the IBA apportioned primary supervisory responsibility for US ________ and agencies of foreign banks among the three federal banking agencies, according to the type of license and whether the banking office has deposit insurance. In addition, the Federal Reserve was given broad authority for the supervision of all federal and state-licensed branches and agencies of foreign banks ____________ in the United States. In fulfilling this responsibility, the Federal Reserve must assess the impact and condition of foreign banks operating across state lines. To carry out its ___________, the Federal Reserve has statutory authority to examine the assets and liabilities of all branches and agencies, but it generally relies upon examinations that state and other federal banking authorities ___________. Under the Bank Holding Company Act and the International Banking Act, the Federal Reserve also has responsibility to approve, review, and monitor the US non-banking activities of foreign banking organization.

Words you may need:

enactment – введення закону в силу

applicable – застосовуваний

“national treatment” – національний режим

(retail) deposit-taking – прийом внесків від населення

option – вибір, право вибору

apportion – розподіляти

statutory authority – право, надане законом

assets and liabilities – активи та пасиви

5. A) Read and discuss the text.

b) Single out the main facts from the text and present them in short essay.

c) Give your answer to the question in the title.