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International Banking Regulation - 3rd Edition - Hardcover
International Banking Regulation - 3rd Edition - Electronic
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CHAPTER III
International Bank Services
This chapter addresses the relationship of banks to each other, to the
countries in which they are located and to their regulators.
A. International Lending Supervision
he international financial business of banks may conveniently be
looked upon as the equivalent of their traditional domestic
businesses (loans, deposits etc.) spread over an international
framework. As domestic businesses change and banks offer new services
(securities and insurance), international business similarly changes.
Banks increasingly now see their domestic markets stabilized in terms of
their current products and seek expansion through new products. Those
products are largely taken from other firms—typically not banks—
entrenched in those other fields and commercial warfare erupts. A semicivilized
conclusion to various of the wars is merger: potential
competitors merge and the single resulting firm offers the products of
both. This too has its international component.
One area where international activity has a different quality from
domestic banking is in the banks’ trades for their own accounts. As their
traditional businesses stabilize, a need is seen for progressing financially
and for hedging present risks by trading in currencies and financial
instruments (such as bonds, both governmental and privately issued)
whose value is measured largely in their supporting currencies. A rich
CHAPTER III - International Bank Services
A. International Lending Supervision
1. United States Bank-Regulatory Relationships
2. Implementation of ILSA
3. International Concepts of Financial Institution
Supervision
a. Capital Adequacy Principles Paper
b. Supplement to the Capital Adequacy
Principles Paper
c. Fit and Proper Principles Paper
d. Framework for Supervisory Information
Sharing Paper
e. Principles for Supervisory Information
Sharing Paper
f. Coordinator Paper
g. Supervisory Questionnaire
B. Country Risk
C. Sovereign Immunity and Act of State Doctrines
1. General
2. The Two Doctrines
3. The Sovereign Immunity Doctrine
4. The Act of State Doctrine
a. As a Choice of Law Rule
b. Based Upon the Separation of Powers
c. The Political Powers Approach
D. Inter-Bank Loans
E. International Loan Forgiveness
F. Letters of Credit
1. Governing Law
a. The Uniform Commercial Code
b. The ICC Uniform Customs and Practices
c. The Common Law
2. Clean Credits
3. Sight or Time Credits
4. The Independence Principle
5. Discrepancies between LC and Documents
6. Fraud
G. Bankers Acceptances
H. Trade Acceptances
I. Investment Banking
1. Bond Underwriting
2. Stock Brokerage
3. Merchant Banking
J. Syndications and Participations
Carl Felsenfeld, is Professor of Law at Fordham University School of Law. He is a Former Vice President & Senior Attorney for Consumer and Commercial Financial Activities, Citicorp. Professor Felsenfeld was a charter member of the Federal Reserve Consumer Advisory Council, Chair of the American Bar Association (ABA) Committee on Consumer Financial Services, Advisor to the Commissioners on Uniform State Laws in their project to write an EFI law (Article 4A of the UCC) and a Representative to the United Nations Commission on International Trade Law (EFT Model Law and International Insolvency Model Law). He is the author of numerous books, including: Banking Regulation in the United States, Felsenfeld on International Insolvency, The Law of Electronic Fund Transfers and Co-Author: International Insolvency.
