Page:United States Statutes at Large Volume 103 Part 3.djvu/434

 103 STAT. 2502 PUBLIC LAW 101-240—DEC. 19, 1989 12 USC 3904a. "SEC. 905A. ADDITIONAL RESERVE REQUIREMENTS. "(a) IN GENERAL,—Each appropriate Federal banking agency shall review the exposure to risk of United States banking institutions arising from the medium- and long-term loans made by such institu- tions that are outstanding to any highly indebted country. Each agency shall provide direction to such institutions regarding addi- tions to general reserves maintained by each banking institution for potential loan losses and special reserves required by such agency arising from such review. ^ "(b) DETERMINATION OP INSTITUTIONAL EXPOSURE TO RISK. —In determining the exposure of an institution to risk for purposes of subsection (a), the appropriate Federal banking agency— "(1) shall determme 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 Intereigency 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 credi- tors 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 collat- eral for payment of interest or principal; "(3) take into account any other factors which bear on such exposure and the particular circumstsmces 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. —Except as provided in para- graph (3), each appropriate Federal banking agency shall determine the timing of any addition to reserves required by, subsection (a). "(2) REPORT. —Each appropriate Federal banking agency shall include in each report required to be made under section 913(d) after 1989 a report on the actions taken pursuant to this section. "(3) DEADLINE.—Each Federal agency required to undertake a review described in subsection (a) shall complete the review not later than December 31, 1990. "(d) HIGHLY INDEBTED COUNTRY DEFINED. —As used in this section, the term 'highly indebted country' means any country designated as V a 'Highly Indebted Country' in the annual World Debt Tables most recently published by the International Bank for Reconstruction and Development before the date of the enactment of this section.". SEC. 403. REPORT ON MARK TO MARKET ACCOUNTING. (a) REPORT REQUIRED. —Before the end of the 90-day period begin- ning on the date of the enactment of this section, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency shall jointly report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on

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