US Code

Public Law 119-73 (01/23/2026)

12 U.S.C. § 3104

Insurance of deposits

(a)

Objective

In implementing this section, the Comptroller and the Federal Deposit Insurance Corporation shall each, by affording equal competitive opportunities to foreign and United States banking organizations in their United States operations, ensure that foreign banking organizations do not receive an unfair competitive advantage over United States banking organizations.

(b)

Deposits of less than amount equal to the standard maximum deposit insurance amount

12 U.S.C. 1813(s)No foreign bank may establish or operate a Federal branch which receives deposits of less than an amount equal to the standard maximum deposit insurance amount unless the branch is an insured branch as defined in section 3(s) of the Federal Deposit Insurance Act [], or unless the Comptroller determines by order or regulation that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection, taking account of the size and nature of depositors and deposit accounts.

(c)

Deposits required to be insured under State law

(1)
12 U.S.C. 1813(s) After , no foreign bank may establish a branch, and after one year following such date no foreign bank may operate a branch, in any State in which the deposits of a bank organized and existing under the laws of that State would be required to be insured, unless the branch is an insured branch as defined in section 3(s) of the Federal Deposit Insurance Act [], or unless the branch will not thereafter accept deposits of less than an amount equal to the standard maximum deposit insurance amount, or unless the Federal Deposit Insurance Corporation determines by order or regulation that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection, taking account of the size and nature of depositors and deposit accounts.
(2)
12 U.S.C. 1815 Notwithstanding the previous paragraph, a branch of a foreign bank in operation on , which has applied for Federal deposit insurance pursuant to section 5 of the Federal Deposit Insurance Act [] by , and has not had such application denied, may continue to accept domestic retail deposits until .
(d)

Retail deposit-taking by foreign banks

(1)

In general

12 U.S.C. 1811After , notwithstanding any other provision of this chapter or any provision of the Federal Deposit Insurance Act [ et seq.], in order to accept or maintain domestic retail deposit accounts having balances of less than an amount equal to the standard maximum deposit insurance amount, and requiring deposit insurance protection, a foreign bank shall—
(A)
establish 1 or more banking subsidiaries in the United States for that purpose; and
(B)
obtain Federal deposit insurance for any such subsidiary in accordance with the Federal Deposit Insurance Act.
(2)

Exception

Domestic retail deposit accounts with balances of less than an amount equal to the standard maximum deposit insurance amount that require deposit insurance protection may be accepted or maintained in a branch of a foreign bank only if such branch was an insured branch on .

(3)

Insured banks in U.S. territories

12 U.S.C. 1811For purposes of this subsection, the term “foreign bank” does not include any bank organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands the deposits of which are insured by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act [ et seq.].

(e)

Standard maximum deposit insurance amount defined

12 U.S.C. 1821(a)(1)For purposes of this section, the term “standard maximum deposit insurance amount” means the amount of the maximum amount of deposit insurance as determined under section 11(a)(1) of the Federal Deposit Insurance Act [].

Pub. L. 95–369, § 692 Stat. 614Pub. L. 96–6493 Stat. 412Pub. L. 102–242, title II, § 214(a)105 Stat. 2303Pub. L. 102–550, title XVI, § 1604(a)(10)106 Stat. 4082Pub. L. 102–558, title III106 Stat. 4224Pub. L. 103–328, title I, § 107(a)108 Stat. 2358Pub. L. 109–173, § 2(c)(4)119 Stat. 3602(, , ; , , ; , , ; , (11), , , 4083; , §§ 302(a), 305, , , 4226; , (d), , , 2360; , , .)

Editorial Notes

References in Text

section 3101 of this titleFor definition of “this chapter”, referred to in subsec. (d)(1), see References in Text note set out under .

act Sept. 21, 1950, ch. 967, § 264 Stat. 873section 1811 of this titleThe Federal Deposit Insurance Act, referred to in subsec. (d)(1), (3), is , , which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 109–173, § 2(c)(4)(A)2006—Subsecs. (b), (c)(1), (d)(1), (2). , substituted “an amount equal to the standard maximum deposit insurance amount” for “$100,000”.

Pub. L. 109–173, § 2(c)(4)(B)Subsec. (e). , added subsec. (e).

Pub. L. 103–328, § 107(a)1994—Subsecs. (a) to (d). , added subsec. (a) and redesignated former subsecs. (a) to (c) as (b) to (d), respectively.

Pub. L. 103–328, § 107(d)Subsec. (d)(3). , added par. (3).

Pub. L. 102–550, § 1604(a)(10)Pub. L. 102–242, § 214(a)(3)1992—Subsec. (c). , struck out the subsec. (c) which was in effect before the subsec. (c) added by , and which amended various other sections of this title.

Pub. L. 102–558, § 302(a)(1)Pub. L. 102–550, § 1604(a)(11)(A)Pub. L. 102–558, § 305section 1815 of this titleSubsec. (c)(1). , inserted “domestic retail” before “deposit accounts” and “and requiring deposit insurance protection,” after “$100,000,” in introductory provisions. , which made an identical amendment, was repealed, effective , by , set out as a Repeal of Duplicative Provisions note under .

Pub. L. 102–558, § 302(a)(2)Pub. L. 102–550, § 1604(a)(11)(B)Pub. L. 102–558, § 305section 1815 of this titleSubsec. (c)(2). , substituted “Domestic retail deposit” for “Deposit” and inserted “that require deposit insurance protection” after “$100,000”. , which made an identical amendment, was repealed, effective , by , set out as a Repeal of Duplicative Provisions note under .

Pub. L. 102–242, § 214(a)(1)1991—Subsec. (b). , (2), redesignated subsec. (b) as (b)(1) and designated last undesignated par. as par. (2).

Pub. L. 102–242, § 214(a)(3)Subsec. (c). , added subsec. (c).

Pub. L. 96–641979—Subsec. (b). inserted second par. which extended time for foreign banks to obtain required deposit insurance with respect to domestic existing branches.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–173section 2(e) of Pub. L. 109–173section 1785 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1992 Amendments

Pub. L. 102–558, title III, § 302(b)106 Stat. 4224

Pub. L. 102–242“This section, and the amendments made by this section [amending this section], shall have the same effective date as the Federal Deposit Insurance Corporation Improvement Act of 1991 [].”
, , , provided that:

Pub. L. 102–550Pub. L. 102–242section 1609(a) of Pub. L. 102–550section 191 of this titleAmendment by effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, , as of , see , set out as a note under .

Regulations

Pub. L. 103–328, title I, § 107(b)108 Stat. 2359

“(1)

In general .—

12 U.S.C. 3104Each Federal banking agency, after consultation with the other Federal banking agencies to assure uniformity, shall revise the regulations adopted by such agency under section 6 of the International Banking Act of 1978 [] to ensure that the regulations are consistent with the objective set forth in section 6(a) of the International Banking Act of 1978.
“(2)

Specific factors .—

In carrying out paragraph (1), each Federal banking agency shall consider whether to permit an uninsured branch of a foreign bank to accept initial deposits of less than $100,000 only from—
“(A)
individuals who are not citizens or residents of the United States at the time of the initial deposit;
“(B)
individuals who—
“(i)
are not citizens of the United States;
“(ii)
are residents of the United States; and
“(iii)
are employed by a foreign bank, foreign business, foreign government, or recognized international organization;
“(C)
persons to whom the branch or foreign bank has extended credit or provided other nondeposit banking services;
“(D)
foreign businesses and large United States businesses;
“(E)
foreign governmental units and recognized international organizations; and
“(F)
persons who are depositing funds in connection with the issuance of a financial instrument by the branch for the transmission of funds.
“(3)

Reduction in regulatory de minimis exemption .—

In carrying out paragraph (1), each Federal banking agency shall limit any exemption which is—
“(A)
12 U.S.C. 3104(d) available under any regulation prescribed pursuant to section 6(d) of the International Banking Act of 1978 [] providing for the acceptance of initial deposits of less than $100,000 by an uninsured branch of a foreign bank; and
“(B)
based on a percentage of the average deposits at such branch;
to not more than 1 percent of the average deposits at such branch.
“(4)

Additional relevant considerations .—

In carrying out paragraph (1), each Federal banking agency shall also consider the importance of maintaining and improving the availability of credit to all sectors of the United States economy, including the international trade finance sector of the United State [sic] economy.
“(5)

Deadline for prescribing revised regulations .—

Each Federal banking agency—
“(A)
shall publish final regulations under paragraph (1) in the Federal Register not later than 12 months after the date of enactment of this Act []; and
“(B)
may establish reasonable transition rules to facilitate any termination of any deposit-taking activities that were permissible under regulations that were in effect before the date of enactment of this Act.
“(6)

Definitions .—

For purposes of this subsection—
“(A)
the term ‘Federal banking agency’ means—
“(i)
the Comptroller of the Currency with respect to Federal branches of foreign banks; and
“(ii)
the Federal Deposit Insurance Corporation with respect to State branches of foreign banks; and
“(B)
12 U.S.C. 1813(s)(3) the term ‘uninsured branch’ means a branch of a foreign bank that is not an insured branch, as defined in section 3(s)(3) of the Federal Deposit Insurance Act ().”
, , , provided that: