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Foreign
Banking Organizations
The foreign banking community in
New York remains vibrant, and New York remains the primary international
banking center of the world. The world’s largest global banking
enterprises are represented in New York through 96 branches and
32 agencies, with aggregate total assets of just under $800 billion.
In addition, New York has 59 licensed representative offices of
foreign banks. All told, banks from 46 countries have offices in
New York licensed by the Department, including 37
countries with branches and agencies and 9 with representative offices.
A decline
in the number of institutions was due, in part, to consolidation,
but was also due to retrenchment, especially among the Japanese
banks. Notwithstanding the decline in numbers of institutions,
the total assets at these offices grew 5.9% from the prior year's
level. A portion of this growth relates to New York being selected
as the consolidated center of many foreign banking organizations’
U.S. operations.
These entities, together
with the domestic banks, provide for a healthy, highly competitive
financial center, thereby enhancing the liquidity of both the local
and national financial markets. These offices also strongly contribute
to the State’s economic vitality providing thousands of jobs.
Several of these foreign
banking organizations were severely affected by the tragic events
of September 11th, through the loss of life, the destruction of
their premises and records, or their temporary displacement from
the downtown area. Each managed a swift recovery of their business
activity, and virtually all have made a commitment to remain and
prosper in the New York market.
International Cooperation
The
Department continues to forge relationships with foreign bank
supervisors and the international banking community to enhance
global bank supervision.
- The
Department has conducted extensive research and provided
insightful comments on the Basel Capital Accord proposal.
These research efforts will be expanded in 2002.
- The
examination staff at the Banking Department has attained
an outstanding reputation for its breadth of knowledge and
sophisticated examination skills. The Department’s capital
markets and trust teams have assumed a leadership role in
providing training seminars abroad to banking supervisors,
sharing its expertise in assessing financial and operational
risks and our keen understanding of capital markets. The
teams have worked with both domestic and foreign supervisors
on coordinated examinations and training.
- The
Department is the only U.S. banking agency to maintain overseas
offices.
The Asian District Office has focused
on the safety and soundness of State-chartered/licensed
banks in the Asia/Pacific Region. To that end the Asian
District Office has performed examinations in all of the
major financial centers in the Region. In cooperation with
the local country banking supervisory authorities, the Asian
District Office has developed a close working relationship
to improve the Banking Department’s understanding of the
unique environment in which New York State-chartered/licensed
Banks operate in Asia. The Tokyo Office provides real time
information on Asian banking developments to the Department’s
New York Headquarters. In this way, the Asian District
Office acts as an early warning system in the Asia/Pacific
region. In 2001 the Region experienced a significant economic
slowdown that weakened the banking industry. The Tokyo
Office continues to monitor these developments in order
to keep the Department’s New York Headquarters informed.
This activity gives the Department an important edge as
the host country supervisor of many Asia/Pacific banks in
New York.
During 2001, the European District Office in London continued
its efforts to develop and maintain relationships with the
major European banking supervisory authorities. This enabled
the Department to better supervise the overseas operations
of the banks for which it has global consolidated, comprehensive
supervisory responsibilities through exchanges of information
and local on-site visits. It also enhanced the Department’s
ability to fulfill its role as a host supervisor to the
diverse foreign banking community in New York.
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