The Michigan Daily-Friday, August 10, 1979-Page 5 4SSETS UP 400 PER CENT SINCE 1972: Foreign banks penetrating U.S. WASHINGTON (AP) - Foreign anks have rapidly penetrated the Jnited States since late 1972, increasing ssets here by 400 per cent and expan- ing their share of domestic deposits ix-fold, the U.S. comptroller general says. The dramatic increase in foreign ank activity was most pronounced in 977 and 1978 when 112 new offices pened, 19 more than were established luring the previous four years, said the eport, obtained yesterday. SINCE NOVEMBER 1972, the num- er of foreign branches, agencies, and ubsidiaries here tripled from 104 to 18. Ninety-six per cent of foreign bank ctivity occurs in New York, California ad Illinois. "Foreign banks in the United States iave become increasingly more com- etitive with domestic banks," the omptroller general said. This is reflec- ed by foreign banks' share of U.S. ommercial and industrial loans, which rcreased from seven per cent in 1972 to 3.5 per cent this year. Total assets of U.S. foreign bank of- ices increased from $24.3 billion in late 972 to $123.3 billion in February 1979, he report said. Domestic deposits con- rolled by those offices rose from $3.9 illion to $25.8 billion during the same eriod. THE REPORT, requested by Rep. ernand St. Germain (D-R.I.), chair- Ran of a House banking subcommittee, aid rapid expansion of foreign banks nay be slowed by the 1978 International anking Act. It placed foreign banks ader many regulations applicable to omestic financial institutions. The Federal Reserve Board said nny foreign banks accelerated their STUDENT ACCOUNTS: Your attention is called to the following rules passed by the Regents at their meeting on Feb- ruary 28, 1936: "Students shall pay all accounts due the University not later than the last day of classes of each semester or summer session. Stddent loans which are not paid or renewed are subject to this regulation; however, students loans not yet due are exempt. Any unpaid accounts at the close of business on the last day of classes will be reported to the Cashier of the Uni- versity and 'a) All academic credits wil be withheld, the grades for the semester or summer session just completed will not be released, and no transcript of credits will be issued. "(b) All students owing such accounts will not be allowed to register in any subsequent semester or summer session until pay- ment has been made. activity here in 1977 and 1978 to beat the law's enactment. While detailing foreign bank penetration in the United States, the comptroller general cautioned, "There is no systematic, comprehensive mechanism for gathering information on all foreign investment in existing U.S. depository institutions." MUCH OF THE data collected in the comptroller general's report came from newspapers, magazines and banking journals. The comptroller general said foreign banks have expanded here to keep up with intensified investment by foreign countries in the United States. Liberalized state laws also encourage foreign bank acitivity. While foreign bankers have flooded U.S. shores, U.S. bankers have also penetrated foreign financial markets with increased vigor, the report shows. In 1966, 13 U.S. banks had 244 foreign branches. By the end of 1977, 130 U.S. banks had 730 branches in foreign coun- tries. ~ .: , t _ , . , :. , t. 'tea°: -