text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``National Treatment in Banking Act of 
  1994''.
  
  SEC. 2. FAILURE TO ACCORD NATIONAL TREATMENT TO UNITED STATES BANKING 
                ORGANIZATIONS.
  
      (a) Identifying Countries That May Be Denying National Treatment to 
  United States Banking Organizations.--The Secretary of the Treasury 
  shall identify, after consultation with the Federal banking agencies, 
  the extent to which foreign countries may be denying national treatment 
  to United States banking organizations--
              (1) based on information relating to banking in the most 
          recent report under section 3602 of the Omnibus Trade and 
          Competitiveness Act of 1988 (or the most recent update of such 
          report); or
              (2) based on more recent information that the Secretary 
          considers appropriate.
      (b) Assessing Whether Possible Denial of National Treatment May Be 
  Having a Significant Adverse Effect.--
              (1) In general.--The Secretary shall assess, after 
          consultation with the Federal banking agencies, whether the 
          possible denial of national treatment to United States banking 
          organizations by a foreign country identified under subsection 
          (a) may be having a significant adverse effect on such 
          organizations.
              (2) Factors to be considered.--In making any assessment 
          under paragraph (1), the Secretary shall consider appropriate 
          factors, including the following:
                      (A) The extent of United States trade with and 
                  investment in the foreign country, the size of the 
                  foreign country's markets for banking services, and the 
                  extent to which United States banking organizations 
                  operate or seek to operate in those markets.
                      (B) The importance of operations by United States 
                  banking organizations in the foreign country to the 
                  export of goods and services by United States firms to 
                  such country.
                      (C) The extent to which the foreign country 
                  provides in advance to United States banking 
                  organizations a written draft of any measure of general 
                  application that the country proposes to adopt, such as 
                  regulations, guidelines, or other policies regarding 
                  new products and services, in order to allow an 
                  opportunity for such organizations to comment on the 
                  measure and for such comments to be taken into account 
                  by the foreign country.
                      (D) The extent to which the foreign country--
                              (i) makes available, in writing, to United 
                          States banking organizations the foreign 
                          country's requirements for completing any 
                          application relating to the provision of 
                          financial services by any such organization;
                              (ii) applies published, objective standards 
                          and criteria in evaluating any such application 
                          from any United States banking organization; 
                          and
                              (iii) renders administrative decisions 
                          relating to any such application within a 
                          reasonable period of time.
              (3) Solicitation of comments.--Before making any assessment 
          under paragraph (1), the Secretary may solicit comments 
          concerning the effect of the possible denial of national 
          treatment on United States banking organizations from 
          interested parties.
      (c) Publication.--The Secretary may publish a notice in the Federal 
  Register of--
              (1) any assessment made under subsection (b)(1) with 
          respect to any country; and
              (2) any change made with respect to any assessment under 
          such subsection which was previously published in the Federal 
          Register.
      (d) Definitions.--The following definitions shall apply for 
  purposes of this section:
              (1) Banking organization.--
                      (A) In general.--The term ``banking organization'' 
                  means any bank, any bank holding company (including any 
                  company required to file reports pursuant to section 
                  4(f)(6) of the Bank Holding Company Act of 1956), and 
                  any savings and loan holding company (as such term is 
                  defined in section 10(a)(1)(D) of the Home Owners' Loan 
                  Act).
                      (B) Banking terms.--For purposes of this paragraph, 
                  the terms ``bank'' and ``bank holding company'' have 
                  the same meaning as in section 2 of the Bank Holding 
                  Company Act of 1956.
              (2) Federal banking agencies.--The term ``Federal banking 
          agencies'' has the same meaning as in section 3(z) of the 
          Federal Deposit Insurance Act.
              (3) National treatment.--The term ``national treatment'' 
          means, with respect to any foreign country, treatment that 
          offers United States banking organizations the same competitive 
          opportunities (including effective market access) in such 
          country as are available to the foreign country's domestic 
          banking organizations in like circumstances.
              (4) Secretary.--The term ``Secretary'' means the Secretary 
          of the Treasury.
  
  SEC. 3. APPLICATIONS BY FOREIGN BANKS AND OTHER PERSONS OF A FOREIGN 
                COUNTRY.
  
      (a) Applications Under the International Banking Act of 1978.--
  Section 7(d) of the International Banking Act of 1978 (12 U.S.C. 
  3105(d)) is amended by adding at the end the following new paragraph:
              ``(6) Additional standard.--In acting on any application 
          under paragraph (1), the Board shall take into account whether 
          the Secretary of the Treasury has published a notice, in 
          accordance with section 2(c) of the National Treatment in 
          Banking Act of 1994, that the possible denial of national 
          treatment to United States banking organizations by the foreign 
          bank's home country identified under section 2(a) of such Act 
          may be having a significant adverse effect on such 
          organizations.''.
      (b) Applications Under the Bank Holding Company Act of 1956.--
  Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844) is 
  amended by adding at the end the following new subsection:
      ``(g) Applications by a Foreign Bank.--In considering any 
  application or notice under section 3 or 4 by any foreign bank (as 
  defined in section 1(b) of the International Banking Act of 1978), the 
  Board shall take into account whether the Secretary of the Treasury has 
  published a notice, in accordance with section 2(c) of the National 
  Treatment in Banking Act of 1994, that the possible denial of national 
  treatment to United States banking organizations by the foreign bank's 
  home country identified under section 2(a) of such Act may be having a 
  significant adverse effect on such organizations.''.
      (c) Amendment to Change in Bank Control Act.--Section 7(j) of the 
  Federal Deposit Insurance Act (12 U.S.C. 1817(j)) is amended by adding 
  at the end the following new paragraph:
              ``(19) Notice by a person of a foreign country.--
                      ``(A) In general.--In considering a notice under 
                  this subsection by a person of a foreign country, the 
                  appropriate Federal banking agency shall take into 
                  account whether the Secretary of the Treasury has 
                  published a notice, in accordance with section 2(c) of 
                  the National Treatment in Banking Act of 1994, that the 
                  possible denial of national treatment to United States 
                  banking organizations by such person's home country 
                  identified under section 2(a) of such Act may be having 
                  a significant adverse effect on such organizations.
                      ``(B) Person of a foreign country defined.--For 
                  purposes of this paragraph, the term `person of a 
                  foreign country' means--
                              ``(i) any entity that--
                                      ``(I) is organized under the laws 
                                  of the foreign country, or
                                      ``(II) has the entity's principal 
                                  place of business in the foreign 
                                  country;
                              ``(ii) an individual who--
                                      ``(I) is a citizen of the foreign 
                                  country, or
                                      ``(II) is domiciled in the foreign 
                                  country; and
                              ``(iii) any person that is, directly or 
                          indirectly, under the control of any entity or 
                          individual described in clause (i) or (ii).''.
      (d) Amendment to National Bank Act.--Section 5155 of the Revised 
  Statutes (12 U.S.C. 36) is amended by adding at the end the following 
  new subsection:
      ``(i) Application by a Bank Which Is a Person of a Foreign 
  Country.--In considering any application under this section by any bank 
  which is a person of a foreign country (as defined in section 
  7(j)(19)(B) of the Federal Deposit Insurance Act), the Comptroller of 
  the Currency shall take into account whether the Secretary of the 
  Treasury has published a notice, in accordance with section 2(c) of the 
  National Treatment in Banking Act of 1994, that the possible denial of 
  national treatment to United States banking organizations by such 
  person's home country identified under section 2(a) of such Act may be 
  having a significant adverse effect on such organizations.''.
      (e) Amendment to Federal Deposit Insurance Act.--Section 18(c) of 
  the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by 
  adding at the end the following new paragraph:
              ``(12) Application by a bank which is a person of a foreign 
          country.--In considering any merger transaction under this 
          subsection involving any bank which is a person of a foreign 
          country (as defined in section 7(j)(19)(B)), the responsible 
          agency shall take into account whether the Secretary of the 
          Treasury has published a notice, in accordance with section 
          2(c) of the National Treatment in Banking Act of 1994, that the 
          possible denial of national treatment to United States banking 
          organizations by such person's home country identified under 
          section 2(a) of such Act may be having a significant adverse 
          effect on such organizations.''.
      (f) Amendment to Federal Reserve Act.--The 3d undesignated 
  paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
  amended in the proviso by inserting ``, including section 5155(i) of 
  the Revised Statutes,'' after ``limitations and restrictions''.
  
  SEC. 4. CONSISTENCY WITH BILATERAL AND MULTILATERAL AGREEMENTS.
  
      No authority under this Act or any amendment made by this Act to 
  any other law may be used to take any action with respect to a foreign 
  country which is inconsistent with any bilateral or multilateral 
  agreement that governs financial services in which such country is 
  obligated to provide national treatment for United States banking 
  organizations.
  
              Passed the House of Representatives September 30, 1994.
  
              Attest:
  
                                             DONNALD K. ANDERSON,
  
                                                                   Clerk.
target: National Treatment in Banking Act of 1994 - Directs the Secretary of the Treasury to:  (1) identify the extent to which foreign countries may be denying national treatment to U.S. banking organizations; and (2) assess whether the possible denial of national treatment to such banking organizations may be having a significant adverse effect upon them.  Authorizes the Secretary to publish notice of such assessments in the Federal Register. 
  Amends the International Banking Act of 1978, the Bank Holding Company Act of 1956, the Federal Deposit Insurance Act, and the National Bank Act to direct the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency to take into account whether the Secretary has published such notice in the Federal Register when considering applications by foreign banks or other persons of a foreign country. 
  Declares that no authority under this Act or any amendment it makes to any other law may be used to take any action with respect to a foreign country which is inconsistent with any bilateral or multilateral agreement that governs financial services in which such country is obligated to provide national treatment for U.S. banking organizations.
feat_title: National Treatment in Banking Act of 1994