Banks of different countries or dependencies had agencies in New York City in 1954. In addition, there are a number of banking institutions operating in New York which for all practical purposes may be considered as subsidiaries of foreign banks. They are chartered by the New York State banking department as New York State banks or trust companies and thus are permitted to engage in all types of banking activities. Practically all the large banks throughout the world have representatives in New York.
Foreign banking agencies in New York State enjoy many of the privileges of domestic institutions. They operate under licenses which authorize them to "transact in this state the
business of buying, selling, paying or collecting bills of exchange, or of issuing letters of credit or of receiving money for transmission or transmitting the same by draft, check, cable or otherwise, or of making sterling or other loans." These institutions are agencies rather than branches, the chief difference being that an agency is not permitted to accept deposits. Licenses are issued and renewed annually by the Superintendent of Banks "after such investigation as he may deem necessary." To obtain such a license, "the actual value of the assets of such corporation...must be at least two hundred and fifty thousand dollars in excess of its liabilities."
The foreign agencies engage in the financing of trade and other international transactions, especially those affecting the countries of their origin. They are large buyers and sellers of foreign exchange, particularly of the countries which they represent. They transfer funds from one country to another and act as agents through which their main offices place surplus funds in the New York market. They also buy and sell securities either for their own account or for the account of their main offices or their customers abroad.
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