Problem
When a U.S. bank accepts a deposit from one of its foreign branches, or from its own IBF, that deposit is subject to Fed reserve requirements. Similarly, reserve requirements are imposed on any loan from a U.S. bank's foreign branch to a U.S. resident, or on any asset purchase by the branch bank from its U.S. parent. What do you think is the rationale for these regulations?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.