International Banking and Foreign Branches

International banking includes cross-border positions in any currency and local positions in currencies foreign to the booking office. Banks can conduct this business from a home office, through a Foreign Branch or subsidiary, through correspondents, or through specialized structures.

Use International Banking for the broad activity and Foreign Bank for a bank organized or controlled outside the host jurisdiction. The Edge Act Corporation and International Banking Facility pages address specialized U.S. structures.

Analysis Framework

Start with legal entity and booking status. A foreign branch is generally part of its parent bank, while a locally incorporated subsidiary is a separate company. An International Banking Facility is a set of books within an eligible U.S. office rather than a separately incorporated bank. An Edge Act corporation has its own federal corporate and regulatory framework.

For any arrangement, verify the home and host regulators, permitted activities, contracting party, booking office, currency, governing law, deposit protection, creditor priority, payment route, and tax or information-reporting obligations. A familiar global brand does not establish that all group entities share liabilities, guarantees, capital, or deposit coverage.

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