The European Economic Community has proposed allowing...

The European Economic Community has proposed allowing banks to operate across national borders as part of its broader campaign to abolish internal frontiers by 1992. Under the plan, a bank authorized to operate in one EEC country automatically would be entitled to set up branches elsewhere in the Common Market without separate authorization from the host country. Currently, banks are subject to the laws of the host country. Under the new proposal, branch banks would be subject to the laws of the country in which their home office is situated, rather than to those of the host country.