NatWest has secured approval from the US Federal Reserve to establish a representative office in Stamford, Connecticut, as it attempts to rebuild its presence in the US.

 

The UK lender has taken advantage of the loosening rules on UK banks’ overseas operations as it plots a fresh push into the US market more than a decade after it was forced to retreat following the financial crisis.

 

The Fed stated that the office in Connecticut would “act as a liaison with current and prospective US customers of the bank” following its approval on August 20.

 

NatWest currently has a US-licensed broker dealer based in Stamford that can execute trades for its institutional clients such as hedge funds. The newly approved representative office will allow it to step up its marketing of products to US clients and build relationships with American companies.

 

The rules were introduced after the 2008 crisis mandating banks separated their retail operations from their riskier investment banking activities. It also banned ringfenced banks from establishing subsidiaries and branches outside the European Economic Area to protect them from risks tied to operations overseas.

 

The move follows a change to ringfencing rules by then-chancellor Rachel Reeves, aimed at making UK banks more competitive, and marks the bank’s first significant attempt to crack the US market, the Financial Times reports.

 

NatWest has been pursuing an aggressive growth strategy following its return to private ownership last year, when the UK Government finally divested its stake in the lender acquired as part of a £45.5bn bailout.  This year it completed the takeover of £2.7bn wealth manager Evelyn Partners as part of an effort to diversify its sources of income.