The New York State Banking Department has approved applications from seven Japanese banks to operate licensed representatives offices in New York.
The seven banks are the first to be licensed under a state law enacted June 30, 1992, that required the banking department to license currently registered foreign representative offices.
Change of Procedure
Before the law was enacted, most foreign banks had only to register with the banking department and to notify the U.S. Department of the Treasury that they were opening an office.
Representative offices are used by banks to establish a New York presence, to foster business relationships, and to act as liaison with banks and customers for their home-country offices.
Deposits Not Allowed
The banks are prohibited from accepting deposits. Such offices are often established as a first step toward seeking regulatory approval to operate licensed agencies or branches.
The new state law established a two-year period during which the 106 exiting foreign banking offices in New York could apply for licenses to operate here.
The approved Japanese banks are: Nanto Bank Ltd. of Nara; Bank of Ikeda Ltd. of Ikeda; Fukui Bank Ltd. of Fukui; Awa Bank Ltd. of Tokushima; Hokkoku Bank Ltd. of Kanazawa; Senshu Bank Ltd. of Osaka; and Michinoku Bank Ltd. of Aomori.