Bank of Nova Scotia in Toronto has become the first foreign bank to open a branch in Texas, and it has designated Texas as its home state in the United States.
The Houston branch, which opened for business Tuesday, replaced Bank of Nova Scotia's representative office there and will offer wholesale banking, corporate investment, lending, and cash management services. The branch will also be able to accept deposits of $100,000 or more from U.S. citizens or any amount from foreigners.
Texas began allowing foreign banks to establish branches in the state in 1999, though Bank of Nova Scotia is the first to do so. Under Texas law, foreign banks with branches in the state cannot accept deposits of less than $100,000 from U.S. citizens.
According to the Texas Department of Banking, by making Texas its home U.S. state, the $338 billion-asset Bank of Nova Scotia will be treated like a Texas-chartered bank for interstate branching purposes.
Bank of Nova Scotia has branches in Portland, Ore., and New York and operates foreign bank agency offices in Atlanta and San Francisco, as well as a representative office in Chicago.
