Representative offices

Representative offices are a way to establish a formal presence in foreign markets.They are not authorized to perform banking services such as effecting transfers and taking deposits.The purpose of these offices is to provide information on local business practices and markets, supply financial contacts with host country institutions and commercial contacts for the bank’s home customers, as well as to offer them assistance with local rules and regulations.They are also useful in expediting the services of the local correspondent bank.Although they have the advantage of on-the-spot supervision, they are relatively costly and difficult to staff with competent people because of their lowly status in the banking hierarchy.