The International Banking Act of 1978 focused on what aspect of banking?

The International Banking Act of 1978 primarily aimed at regulating the operations of foreign banks within the framework of federal law. It established a legal framework that allows foreign banks to operate in the United States while ensuring they adhere to the same regulations and standards as domestic banks. This meant that foreign banks would need to obtain a federal banking charter and be subject to the same oversight as their American counterparts, thereby promoting a more level playing field.

The Act also addressed specific aspects of how these foreign institutions could engage in banking activities, emphasizing the need for compliance with federal regulations, which is critical for maintaining the stability and integrity of the U.S. banking system. This regulation covers not just capital requirements but also various operational standards necessary to protect consumers and the economy.

In contrast, the other options relate to different aspects of banking regulation. Taxation of foreign banks and licensing requirements for domestic banks concern different regulatory frameworks, while establishing interstate bank operations is focused on the movement of banks across state lines rather than foreign bank operations within the U.S. Thus, the core contribution of the International Banking Act was its emphasis on integrating foreign banks under a unified regulatory regime, ensuring better oversight and compliance.