View all text of Chapter 40 [§ 3901 - § 3912]
§ 3904a. Additional reserve requirements
(a) In general
(b) Determination of institutional exposure to riskIn determining the exposure of an institution to risk for purposes of subsection (a), the appropriate Federal banking agency—
(1) shall determine whether any country exposure that is, and has been for at least 2 years, rated in the category “Other Transfer Risk Problems” or the category “Substandard” by the Interagency Country Exposure Review Committee should be reevaluated;
(2) may exempt, in full or in part, from reserve requirements established pursuant to subsection (a), any loan—
(A) to a country that enters into a debt reduction, debt service reduction, or financing program with its bank creditors that is supported by the International Bank for Reconstruction and Development or the International Monetary Fund; or
(B) secured, in whole or in part, by appropriate collateral for payment of interest or principal;
(3) take into account any other factors which bear on such exposure and the particular circumstances of the institution; and
(4) shall consider as indicators of risk, where appropriate, the average reserve levels maintained by or required of banking institutions in foreign countries and secondary market prices for such loans.
(c) Timing and report
(1) Determined by agency
(2) Report
(3) Deadline
(d) “Highly indebted country” defined
(Pub. L. 98–181, title I [title IX, § 905A], as added Pub. L. 101–240, title IV, § 402(b), Dec. 19, 1989, 103 Stat. 2501.)