Introduction

Each year the international operations of American banks account for a larger and increasingly important share of their total activities. At year-end 1972, 107 U.S. commercial banks operated 627 overseas branches. At the same time these overseas branches held $80 billion in assets, equivalent to 10 per cent of the domestic assets of all U.S. banks. At year-end 1972 close to 35 per cent of the deposits of New York Clearing House banks resided in their foreign branches. London branches account for approximately 54 per cent of foreign branch assets of American banks, indicating the importance of this financial centre to the international operations of American banks. Reciprocally, American banks hold close to 44 per cent of non-sterling liabilities in U.K. banks, most of which is centered in London, reflecting the dominant position held by American banks in this important financial entrepôt centre. London continues to challenge New York for the lead in international finance. However, New York houses a substantial and growing number of foreign bank branches, agencies and banking corporations. In addition, New York banks hold a major part of the $14 billion of foreign deposits in American banks.