Recent Development: New Limits on Banks Lending to Foreign Nations

Although not directly tied to the foreign debt problem, the recent loss of congressional confidence in United States bank regulatory agencies caused by the failure of the Continental Illinois Bank may also compel reevaluation of the Act. The purported failure of the regulators to discover the extent of Continental Illinois\u27 imprudent loans has led several legislators and regulators to call for greater supervision of lending institutions. This Recent Development will briefly examine the International Lending Supervision Act of 1983, including the regulatory scheme that predated the Act and the restrictions the Act places on the private banking industry in the United States. It then will comment on the Act\u27s major drafting infirmities and the need for additional regulatory requirements not included in the Act