The Bank of Japan (BoJ) has become the latest body to challenge the Federal Reserve over plans to apply higher prudential standards to foreign banks operating in the US.

The foreign bank regulations, set out by the Fed in a notice of proposed rule-making in December last year, contain measures that include establishing an "intermediate holding company" in the US, requiring banks to hold capital in line with US standards, and forcing banks to maintain a specific US liquidity buffer that would not