WASHINGTON -- A 1991 law requiring the Federal Reserve to charge foreign banks an annual on-site examination fee could cause serious repercussions in other countries' treatment of U.S. banks, Federal Reserve Chairman Alan Greenspan has warned.

In a letter to Rep. Henry B. Gonzalez, the House Banking Committee chairman, Mr. Greenspan said the law presents "difficult and time-consuming issues of implementation" but that the Fed is nearly ready to promulgate "a methodology to assess" foreign bank examination costs.

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