Foreign branch

taxation of foreign branches

Broadly, UK companies are currently subject to UK Corporation Tax on the profits of their foreign branches (with credit for overseas tax paid).

Foreign Branch or Division - An unincorporated foreign branch or division is not considered an entity separate and distinct from its domestic owner and therefore, will not be considered a 'foreign insurer.

Foreign Branch - A foreign affiliate that is legally a part of the parent firm. In the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.

Foreign Branch Bank
A type of foreign bank that is obligated to follow the regulations of both the home and host countries.

Either/or facility An agreement permitting a bank customer to borrow either domestic dollars from the bank's head office or Eurodollars from one of its foreign branches. Either-or order Used in the context of general equities.

Regulation M Federal Reserve Board regulation that currently requires member banks to hold reserves against their net borrowings from their foreign branches over a 28-day averaging period.

Eurodollar Dollar-denominated deposits in foreign banks or foreign branches of U.S. banks. European Community (EC) A group of Western European countries joined together to promoted trade and economic and political operation.

Regulation M Fed regulation currently requiring member banks to hold reserves against their net borrowings from their foreign branches over a 28-day averaging period.

An ADR documents the holder's beneficial ownership of foreign stock held in trust by a foreign branch or correspondent of an American bank.

The shares are held by a foreign branch of an international bank. Back to top Gilt Fund A mutual fund that invests in several different types of medium and long-term government securities in addition to top quality corporate debt.

from their foreign branches over a 28-day averaging period. Reg M has also required member banks to hold
reserves against Eurodollars lent by their foreign branches to domestic corporations for domestic purposes.

addressees at foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom and Canada. Large-denomination time deposits, RPs, and Eurodollars exclude those amounts held by depository institutions, the U.S.

Thus, it is important that the confirming bank not be just a foreign branch of the buyer's bank, lest it, too, get caught in the same problem. Even foreign branches are subject to regulations imposed by their home countries.
By Buddy Baker
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Notes sold between October 1984 and February 1986 to foreign institutions, foreign branches of US institutions, foreign central banks or monetary authorities, and to international organizations in which the United States held membership.

A foreign branch of a large commercial U.S. bank issues the receipts. A custodian, generally a bank in the home country of the issuer, holds the foreign shares. The ADR's are traded in U.S.

Eurodollar obligations
Certificates of deposit issued in U.S. dollars by foreign banks and foreign branches of U.S. banks.
Euro lines
Lines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies.

EURO LINES - Lines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurre...
EURO MEDIUM-TERM NOTE (EURO MTN) - An MTN issue sold internationally outside the country in whose curre...

Eurodollar
U.S. dollar-denominated deposits at foreign banks or foreign branches of American banks. By locating outside of the United States, eurodollars escape regulation by the Federal Reserve Board.

Lines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies.
Euro-medium term note (Euro-MTN) ...

American Depository Receipt: A receipt for shares of a foreign corporation on deposit with a foreign branch of an American bank.
American Stock Exchange (AMEX): The second largest traditional stock exchange, based in New York City.

money supply measure that includes M2plus large time deposits, large denomination repurchase agreements, shares in Money Market Mutual Funds held by institutional investors, and certain Eurodollar deposits in foreign branches of U.S. banks.

the term only referred to dollar deposits in London; later it became applicable to dollar deposits anywhere in Europe or the Caribbean; now it often refers to dollar deposits at any offshore location. The deposits may be held by the foreign branches ...

Member Bank or Bank Holding Company, can receive deposits (sans FDIC coverage) from, and make loans to, companies engaging in international business. This structure allows foreign branches of U.S. Banks.

Then, the funds from the foreign asset are transfered into a bank account in the domestic country. The domestic investor usually has a partner transferring assets to the foreign branch on his or her behalf.

the supervision of banks' foreign establishments, followed in 1993 by Minimum Standards for the supervision of international banking groups and their cross-border establishments, which set the principles for the supervision of banks' foreign branches, ...

See also: Banks, Expense, Federal reserve board, Funding, Expected return