Supervision of international bank branches

Organic expansion for international banks continues to pose questions around the form that this expansion should take. An important part of the decision making process will be the host country regulator’s attitude to bank branches.

Attitudes of national regulatory authorities to the presence of an international bank through a branch operation differs across jurisdictions. Some authorities have adopted an open approach particularly where the bank’s home country regulatory regime is broadly equivalent to its own. The bank’s business model may also play an important role as well as resolvability requirements.

To help keep banks up-to-date with current developments, we have produced a global comparative analysis concerning the regulation and the supervision of bank branches.

1.  How can international banks operate in your jurisdiction?
2. What considerations does your regulator take into account when an international bank wishes to open a branch in your jurisdiction?
3. Is resolution an important factor in your supervisor’s determination of a branch?
4. What are the regulatory reporting requirements placed on branches?
5. Do you allow dual licenses whereby a banking group may hold a banking license through the branch and have a subsidiary also holding a banking license?
6. Where can I find further information?