Remarks of
Leslie A. Woolley
Deputy to the Chairman for Policy
Federal Deposit Insurance Corporation
Before the
Institute of International Bankers
Annual Washington Conference
Washington, DC
March 4, 1997
Thank you. I'm delighted -- once again -- to join FDIC Chairman Helfer as a speaker at
the Institute's annual Washington conference.
Foreign banking organizations play an increasingly significant role in the U.S. banking
system. With the growth of the Internet and other electronic communications networks,
the business of banking is becoming increasingly global. As of the end of 1995, foreign
banking organizations in America held about $974 billion in total U.S. assets.
During the past year, to better focus on international banking and bank supervision, the
FDIC created an International Branch within our Division of Supervision. We're very
excited about this new branch and the services it is providing, and we know that you will
benefit from its work.
Christie Sciacca, a veteran of many years in bank supervision at the FDIC, is the new
Assistant Director heading up the international branch, which opened for business here
in Washington in September of 1996. If you haven't met Christie yet, you should!
This new branch is the central area at the FDIC for gathering and analyzing information
about the strength of individual foreign banking organizations in the U.S. and worldwide.
We are working closely with the other regulators in this process -- sharing information,
coordinating examination schedules, developing regulations, and so on.
The new branch also is monitoring today's "hot topics" in international banking, and
anticipating what could be important tomorrow to the banks we supervise.
The branch is not yet fully staffed, but we expect that within the next few weeks it will be
at full strength -- with analysts focusing on different regions of the world, and review
examiners focusing on individual institutions. But even with the small crew of employees
on board so far, the international branch has already been very busy and, we believe,
very productive. I'd like to tell you about some of the programs and issues we are
working on that could directly affect foreign banks in the United States.
One of the top priorities of the FDIC and the other U.S. bank regulators is to reduce the
regulatory burden on the industry. In fact, Chairman Helfer believes so strongly in
reduced regulatory burden that she gave Joe Neely, an FDIC Board member, the day-
to-day responsibility for monitoring our progress in that area.
Leslie A. Woolley
Deputy to the Chairman for Policy
Federal Deposit Insurance Corporation
Before the
Institute of International Bankers
Annual Washington Conference
Washington, DC
March 4, 1997
Thank you. I'm delighted -- once again -- to join FDIC Chairman Helfer as a speaker at
the Institute's annual Washington conference.
Foreign banking organizations play an increasingly significant role in the U.S. banking
system. With the growth of the Internet and other electronic communications networks,
the business of banking is becoming increasingly global. As of the end of 1995, foreign
banking organizations in America held about $974 billion in total U.S. assets.
During the past year, to better focus on international banking and bank supervision, the
FDIC created an International Branch within our Division of Supervision. We're very
excited about this new branch and the services it is providing, and we know that you will
benefit from its work.
Christie Sciacca, a veteran of many years in bank supervision at the FDIC, is the new
Assistant Director heading up the international branch, which opened for business here
in Washington in September of 1996. If you haven't met Christie yet, you should!
This new branch is the central area at the FDIC for gathering and analyzing information
about the strength of individual foreign banking organizations in the U.S. and worldwide.
We are working closely with the other regulators in this process -- sharing information,
coordinating examination schedules, developing regulations, and so on.
The new branch also is monitoring today's "hot topics" in international banking, and
anticipating what could be important tomorrow to the banks we supervise.
The branch is not yet fully staffed, but we expect that within the next few weeks it will be
at full strength -- with analysts focusing on different regions of the world, and review
examiners focusing on individual institutions. But even with the small crew of employees
on board so far, the international branch has already been very busy and, we believe,
very productive. I'd like to tell you about some of the programs and issues we are
working on that could directly affect foreign banks in the United States.
One of the top priorities of the FDIC and the other U.S. bank regulators is to reduce the
regulatory burden on the industry. In fact, Chairman Helfer believes so strongly in
reduced regulatory burden that she gave Joe Neely, an FDIC Board member, the day-
to-day responsibility for monitoring our progress in that area.
We know that laws and regulations governing safety and soundness, criminal activities,
consumer protection and yes, international banking supervision, impose significant
costs on banks. We have been working hard to reduce that burden.
Last year, the FDIC began reviewing each of its 120 regulations and written policies to
see if they could be simplified or eliminated completely. In April, the FDIC completed the
reviews and began implementing the recommendations. Since then, the FDIC has
streamlined 25 of its rules and written policies, and eliminated 15 others. FDIC staff
have identified 45 more rules and policies they believe can be trimmed back or
abolished. We hope to get these proposals out for public comment before the end of
this year. When this process is over, we expect that the FDIC will have revised or
rescinded two-thirds of the rules and policies on our books.
In the international area, the FDIC's new branch is doing its part by reviewing all of its
relevant regulations and closely coordinating with the other banking agencies to ensure
consistent regulation.
Also among our top priorities in terms of reducing the burdens on banks is to simplify
and speed up the applications process.
We recognize that, in some respects, the applications process in international banking
supervision has been cumbersome and, at times, frustrating. We know that delays in
getting regulatory approvals can mean lost business opportunities for international
banks, and we don't want the FDIC applications process to put them at a competitive
disadvantage.
That's why our international branch is looking into options for streamlining our
applications process for well-capitalized, well-run banks. Some of the ideas under
consideration are pretty basic. They involve such things as having our front-line
supervisors in the regional offices share applications immediately with our Washington
staff. This will create a "parallel track" -- two levels of review occurring at the same time,
and not one after the other.
Other ideas include changing some applications from well-managed banks into notices
that do not require specific approval from the FDIC. Or, perhaps giving regional FDIC
offices more authority to approve certain applications. Or, allowing well-managed
institutions to obtain what securities regulators in the U.S. call a "shelf" registration --
essentially, advance approval to engage in certain activities if and when the bank later
decides to conduct them.
These are only staff ideas under consideration. They have not yet been endorsed by the
FDIC's Board or our Division Directors. But we are actively reviewing our application
process and working to improve it.
consumer protection and yes, international banking supervision, impose significant
costs on banks. We have been working hard to reduce that burden.
Last year, the FDIC began reviewing each of its 120 regulations and written policies to
see if they could be simplified or eliminated completely. In April, the FDIC completed the
reviews and began implementing the recommendations. Since then, the FDIC has
streamlined 25 of its rules and written policies, and eliminated 15 others. FDIC staff
have identified 45 more rules and policies they believe can be trimmed back or
abolished. We hope to get these proposals out for public comment before the end of
this year. When this process is over, we expect that the FDIC will have revised or
rescinded two-thirds of the rules and policies on our books.
In the international area, the FDIC's new branch is doing its part by reviewing all of its
relevant regulations and closely coordinating with the other banking agencies to ensure
consistent regulation.
Also among our top priorities in terms of reducing the burdens on banks is to simplify
and speed up the applications process.
We recognize that, in some respects, the applications process in international banking
supervision has been cumbersome and, at times, frustrating. We know that delays in
getting regulatory approvals can mean lost business opportunities for international
banks, and we don't want the FDIC applications process to put them at a competitive
disadvantage.
That's why our international branch is looking into options for streamlining our
applications process for well-capitalized, well-run banks. Some of the ideas under
consideration are pretty basic. They involve such things as having our front-line
supervisors in the regional offices share applications immediately with our Washington
staff. This will create a "parallel track" -- two levels of review occurring at the same time,
and not one after the other.
Other ideas include changing some applications from well-managed banks into notices
that do not require specific approval from the FDIC. Or, perhaps giving regional FDIC
offices more authority to approve certain applications. Or, allowing well-managed
institutions to obtain what securities regulators in the U.S. call a "shelf" registration --
essentially, advance approval to engage in certain activities if and when the bank later
decides to conduct them.
These are only staff ideas under consideration. They have not yet been endorsed by the
FDIC's Board or our Division Directors. But we are actively reviewing our application
process and working to improve it.