Board of Governors of the Federal Reserve System

The Federal Reserve has supervisory and regulatory responsibility for the international operations of member banks, bank holding companies, and Edge and agreement corporations. The international activities of U.S.–chartered banks include lending to and accepting deposits from foreign customers at the banks’ U.S. offices and engaging in other financial transactions with foreign counterparts. Some additional responsibilities include:

• authorizing the establishment of foreign branches of national banks and state member banks and regulating the scope of their activities;
• chartering and regulating the activities of Edge and agreement corporations, which are specialized institutions used for international and foreign business;
• authorizing foreign investments of member banks, Edge and agreement corporations, and bank holding companies and regulating the activities of foreign firms acquired by such investors; and
• establishing supervisory policy and practices regarding foreign lending by state member banks

The bulk of the international business of U.S.–chartered banks takes place at their branch offices located abroad and at their foreign-incorporated subsidiaries, usually wholly owned. Increasingly, U.S. banks are also offering a range of sophisticated financial products to residents of other countries and to U.S. firms abroad. (Federal Reserve System: Purposes and Functions)