Natwest has secured approval from the US Federal Reserve to expand its operations in the United States. The British banking group has been granted permission to open a "representative office" in Connecticut.
This new office is intended to serve as a liaison for Natwest's existing and potential US customers. Its functions will include promoting and marketing the bank's products and services, conducting customer service activities, and performing back-office tasks.
Under US regulations, a representative office can engage in administrative functions and solicit new business for a foreign bank. However, it is not authorised to accept deposits, lend money, or carry out other traditional banking activities.
A source close to the bank indicated that the new office could strengthen Natwest's operating model through on-the-ground relationship management, credit support, and market engagement. The source also suggested that January 2025 ring-fencing reforms under Rachel Reeves contributed to establishing a physical presence outside the European Economic Area.