The Federal Reserve said Tuesday that it had approved the applications of banks in Italy and Japan to establish representative offices in New York.
Banca Popolare di Vicenza in Vicenza, a $50.9 billion-asset cooperative bank in Italy with roughly 60,000 shareholders, will use its office as a liaison between the bank and its customers. It also will conduct research and assemble credit information on companies, organize seminars, solicit banking business and assist clients in obtaining services in the U.S. from the office. The bank provides consumer and wholesale banking services to individuals, professionals and small- and medium-sized companies.
Bank of Fukuoka Ltd., a $117 billion-asset bank in Fukuoka, Japan, plans to use its office for representational activities such as gathering information and conducting research and acting as a liaison between the bank and its U.S. customers and correspondent banks. As the 13th largest bank in Japan by assets, Bank of Fukuoka performs a range of commercial and retail banking activities.
In approving representative offices, the Fed considers whether the foreign banks directly engage in banking outside of the United States, the banks' record of operation in their home countries and overall financial resources. The Fed also considers the absolute and relative size of the banks in their home countries, the scope of activities and the potential for risks.
