(1) Highly rated foreign bank. For purposes
of these Rules, a foreign bank is a highly rated foreign bank if each Georgia
state branch and Georgia state agency, each federal branch and federal agency
of the foreign bank, and each state branch and agency maintained by the foreign
bank in a state other than Georgia:
(a) As to
Georgia state branches or Georgia state agencies, has a composite rating of 1
or 2 from the Department and the FRB under the interagency rating system for
United States branches and agencies of foreign banks;
(b) As to foreign bank federal branch or
agency offices, or state branch or agency offices licensed by a state other
than Georgia, has a composite rating of 1 or 2 from the FRB, the OCC or the
relevant state bank supervisory authority, as applicable, under the interagency
rating system for United States branches and agencies of foreign
banks;
(c) Is not subject to an
administrative action, including, a cease and desist order, consent order,
formal written agreement, or prompt corrective action directive; and
(d) As to the foreign bank's capital, the
foreign bank maintains capital on a consolidated basis that meets or exceeds
the minimum capital standards under its home country law as of the most recent
fiscal quarter and year end.
Not less than annually, a highly rated foreign bank shall
provide a certification to the Department confirming that it satisfies the
provisions in this Rule to be considered a highly rated foreign bank, in
accordance with such procedures as the Department shall establish. A highly
rated foreign bank shall promptly inform the Department if it becomes aware of
the existence of any fact that could cause its loss of status as "highly
rated." The Department will also notify the foreign bank of its loss of status
as a highly rated institution when such determination is made.
(2) Pledged Asset
requirement for highly rated foreign banks. For a highly rated foreign bank,
the maximum value of the required pledged assets shall be calculated according
to the following schedule, as a percentage of average total liabilities for the
previous month of such Georgia state branch or branches or Georgia state agency
or agencies, including liabilities of an international banking facility
maintained by such branch or branches or agency or agencies, but excluding
amounts due and other liabilities to other offices, agencies, branches and
affiliates not located in the state of Georgia and affiliates (as affiliates is
defined in Code Section
7-1-1100), of such foreign bank:
(a) one percent of the first $1
billion;
(b) three quarters of one
percent of the next $4 billion;
(c)
one half of one percent of the next $5 billion;
(d) one quarter of one percent of any
additional liabilities; and
(e)
provided, however, that in no event shall the maximum amount required to be
pledged under this section exceed $100,000,000.
(3) Loss of highly rated status. Upon a
foreign bank being informed by the Department that it is no longer deemed
"highly rated" for purposes of this Rule, or, if sooner, the foreign bank
otherwise becoming aware of the existence of any fact that could cause its loss
of status as "highly rated," the foreign bank shall have 30 calendar days to
comply with the Pledged Asset requirements applicable to those institutions not
designated as "highly rated," unless otherwise directed by the
Department.
Notes
Ga. Comp. R.
& Regs. R. 80-7-1-.12
O.C.G.A.
ยงยง
7-1-61;
7-1-1109.
Original Rule entitled "Highly Rated Foreign Banks" adopted. F.
Dec. 20, 2024; eff.
Jan. 9,
2025.
