COMMERCIAL BANKS
These are the backbone of any financial center. The resources of the commercial banks located in New York are greater than those of any other city in the world. All large New York City banks have well-established foreign departments and extensive correspondent relations with the leading banks of other nations.
The principal international activities carried out by the large banks are as follows: They buy and sell foreign exchange, finance international trade of the United States and of other countries, and extend credit to foreign banks in various forms, including letters of credit, reimbursement credits, acceptances, and straight loans, secured or unsecured.
They receive deposits, both time and demand, from foreigners: individuals, banks, corporations, and governments. The banks are paying and transfer agents for the securities of foreign corporations and governments and act as custodians of United States securities owned by foreigners. They maintain extensive credit files on foreign firms and individuals, and economic data on various countries, including laws and trade customs, which enable them to render assistance to their customers in international transactions. Finally, they issue transferable depositary receipts for foreign shares to facilitate transactions in such securities by United States residents.
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