The Federal Reserve has approved National Westminster Bank Plc’s application to establish a representative office in Stamford, Connecticut, but the new office will not be allowed to accept deposits or make loans, DKNews.kz reports.
The Fed’s decision took effect on August 20, 2026. The application was filed by London-based National Westminster Bank Plc (NatWest Bank), which had approximately $604.6 billion in total assets as of the end of 2025.
NatWest Gets an Office, but Not a Full Banking Branch
The key detail lies in the status of the new operation.
This will be a representative office, not a bank branch. It will serve as a liaison with current and prospective U.S. customers, promote and market NatWest Bank’s products and services, provide customer-service support and perform back-office functions.
U.S. rules draw a clear line between a representative office and a full-service banking branch.
Such an office may solicit new business, conduct research, act as a link between the bank’s head office and U.S. customers, and perform preliminary and servicing steps related to lending.
However, it may not accept deposits, lend money directly or conduct other banking activities.
So the Fed’s approval does not mean that Connecticut will get a conventional NatWest branch offering deposits and loans.
NatWest Bank Has About $604.6 Billion in Assets
The size of the bank makes the decision notable for the U.S. financial market.
NatWest Bank provides core banking services to retail and commercial customers in the United Kingdom and also engages in international commercial lending. Its total assets stood at approximately $604.6 billion at the end of 2025.
Outside the United Kingdom, the bank currently operates one branch in Frankfurt, Germany.
NatWest Bank is wholly owned by NatWest Holdings Limited, which in turn is owned by NatWest Group plc. The group has approximately $961.5 billion in consolidated assets.
NatWest Already Has a Presence in Stamford
The group is not entering the U.S. market from scratch.
NatWest Markets Plc, the investment bank controlled by NatWest Group, already has U.S. operations through NatWest Markets Securities Inc., a registered broker-dealer based in Stamford.
NatWest Markets Plc also operates a representative office in Stamford that supports its cross-border lending activity.
The new approval specifically concerns NatWest Bank itself.
The office will give the bank a direct channel for maintaining relationships with existing and prospective U.S. clients.
Fed Reviewed Supervision, Financial Resources and AML Controls
The approval required more than a review of NatWest’s commercial plans.
When considering applications from foreign banks, the Federal Reserve examines the quality of supervision in the bank’s home country, its financial and managerial resources, anti-money-laundering procedures and the ability of foreign regulators to share information with U.S. authorities.
NatWest Bank is supervised by the Prudential Regulation Authority (PRA), which is part of the Bank of England. The PRA oversees U.K. banking groups on a consolidated basis, including governance, risk management, capital, liquidity and resolvability.
The Financial Conduct Authority (FCA) supervises market conduct and monitors compliance with anti-money-laundering and counter-terrorist-financing requirements.
The Fed concluded that this supervisory framework is consistent with the proposed activities of the Stamford office.
U.S. Regulators Saw No Significant Financial-Stability Risk
The Federal Reserve separately assessed whether NatWest Bank’s proposal could pose a threat to U.S. financial stability.
According to the order, the proposed operation does not appear to create significant risk to the stability of the U.S. financial system. The Fed considered the scope of NatWest Bank’s planned U.S. activities, the potential transmission of financial instability and the supervisory framework in the United Kingdom.
NatWest and NatWest Bank have also committed to provide the Federal Reserve with information it may require about the bank and its affiliates. Subject to certain conditions, the PRA and FCA may also share information with the U.S. regulator.
Connecticut Still Has a Say
Federal approval is not the final regulatory step.
The Fed’s order specifically states that its decision does not replace the authority of the State of Connecticut. Licensing of the foreign bank’s representative office also remains subject to the Connecticut Department of Banking.
The approval is also conditional on NatWest complying with the commitments made to the Fed. If future restrictions on access to information prevent U.S. regulators from monitoring compliance with federal law, the Federal Reserve may require NatWest Bank to terminate direct or indirect activities in the United States.
We previously covered how Federal Reserve policy can affect the tenge, oil and investment markets. This time, the regulator made a separate decision involving one of Britain’s largest banking groups: NatWest Bank received federal approval to establish a Stamford representative office effective August 20, but without the right to accept deposits or make loans.
