The Board of Governors of the Federal Reserve System issued a letter on March 12, 2026 granting a request made by HSBC Bank plc in London. HSBC asked that a state‑member bank be designated as the depository bank to hold capital equivalency deposits for its proposed branch in New York City. The request was evaluated under section 4(g) of the International Banking Act, which allows foreign banks to use a U.S. depository bank for capital deposits. The letter confirms the approval of this arrangement and references the legal basis for the decision. No further details are provided in the letter. This approval is part of the Federal Reserve’s oversight of foreign bank operations in the United States and ensures compliance with U.S. banking regulations.
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