1 International Banking Activities By John T. Ross Deputy Commissioner California Department of Financial Institutions

2 Foreign Banks in U.S. As of 12/31/06Number of offices in U.S. Total Assets (In Billions) Representative Offices 145N/A Agencies69$87 Branches190$1,594 Total404$1,681

3 Most Significant Foreign Banking Assets Represented By Country Country Total Assets in U.S. FBO offices as of 12/31/06 (in billions) Germany$305 France$263 Japan$214 Netherlands$182 Canada$154 United Kingdom$150 Switzerland$101 Total$1,369

4 States with Significant FBO Presence State No. of offices (State & Federal) Total Assets (Approximately) NY191$1.47 trillion IL24$71 billion CT7$69 billion FL51$32 billion CA70$20 billion TX27$7 billion As of 12/31/06

5 San Francisco 111 Pine Street, Suite 1100 San Francisco, CA (415) Sacramento th Street Sacramento, CA (916) Los Angeles 300 South Spring Street, Suite Los Angeles, CA (213) San Diego 7575 Metropolitan Drive, Suite 108 San Diego, CA (619) The Department has four office locations: Total number of employees219 Total number of examiners in all divisions and offices130 Number of Bank examiners92

6 Foreign Banking Offices in California California (state only) California (state and federal) No. of FBO offices 6170 Total Assets$19 billion$20 billion Approximately 95% of assets are in the state system As of 12/31/06

7 California Regulated Offices of Foreign Banks By Type TypeNumber of offices as of 12/31/03 Number of offices as of 12/31/04 Number of offices as of 12/31/05 Number of offices as of 12/31/06 Representative Office Nondepositary Agency8777 Depositary Agency10998 Limited Branch3333 Wholesale Branch23 Retail Branch2222 Total655761

8 Financial Trends of California Regulated Foreign Banks (In millions of Dollars) As of 12/31/03 As of 12/31/06 Total Assets$16,721$18,956 Total loans$10,765$13,462 Total Deposits $7,279$10,045

9 California Regulated Offices of Foreign Banks By Country CountryNo. of offices Total Assets (in Millions) Total Loans (in Millions) CountryNo. of offices Total Assets (in Millions) Total Loans (in Millions) Australia1N/A Japan6$4,666$4,186 Belgium1N/A Korea1$219$192 Canada3$919$907Mexico1N/A El Salvador3$12N/A Netherlands 2N/A France4$3,896$2,002Philippines1$9$3 Germany3$6N/ASingapore3$1,743$1,555 Guam1$26$23Switzerland1N/A Hong Kong3$555$493Taiwan14$6,131$3,548 India2$482$415Thailand2$62$34 Ireland3N/A UK4$5N/A Israel1$224$103 As of 12/31/06

10 Thanks for your time! Questions?