Bank Export Services Act

(Reported to House from the Committee on Banking, Finance and Urban Affairs with amendment, H. Rept. 97-629)

Bank Export Services Act - Amends the Bank Holding Company Act of 1956 to permit bank holding companies to invest in shares of any export trading company whose acquisition or formation by a bank holding company has not been disapproved by the Board of Governors of the Federal Reserve System. Limits the investments in such shares to not more than five percent of the bank holding company's consolidated capital and surplus.

Establishes a procedure for the review of proposed investments in export trading companies.

Prohibits the total amount of extensions of credit to an export trading company by a bank holding company which invests in an export trading company, when combined with all such extensions of credit by all the subsidiaries of such holding company, from exceeding at any one time ten percent of the holding company's consolidated capital and surplus.

Prohibits any investing bank holding company or any of its subsidiaries from extending credit to an export trading company on terms more favorable than those afforded to other borrowers.

Permits an export trading company, for the purposes of this Act, to engage in or hold shares of a company engaged in the business of underwriting, selling, or distributing securities in the United States only to the extent that any bank holding company which invests in such export trading company may do so under applicable Federal and State banking laws and regulations.

Prohibits an export trading company from engaging in agricultural production activities or in manufacturing except for incidental product modification necessary to conform goods or services to foreign country requirements and to facilitate their sale in foreign countries.

Permits the Board of Governors of the Federal Reserve System to require a bank holding company which invests in an export trading company to terminate its investment or be made subject to limitations or conditions, whenever the export trading company takes unnecessary positions in commodities or commodities contracts, in securities, or in foreign exchange.

Raises the ceiling on the aggregate amount of not-fully-secured acceptances which a member bank and any Federal or State branch or agency of a foreign bank can create with respect to the importation, exportation, or domestic shipment of goods.

Increases such limitation from one-half to 150 percent of the capital stock or, with the Federal Reserve Board's permission, twice the amount of the capital stock.

Limits the aggregate acceptances growing out of domestic transactions to not more than 50 percent of the aggregate of all acceptances.

States that such limitations do not apply to any acceptance which is issued by an institution and which is covered by a participation agreement from other banks or regulated corporations, except to the extent that the issuing bank retains or purchases such acceptance.

Defines the capital of a United States branch or agency of a foreign bank to be the dollar equivalent of the paid-up capital stock and surplus of the foreign bank, as determined by the Board.