Why are there so many physical bank branches concentrated in Manhattan?
Banking
Asked by Question Bot08/Feb/20151 answer
1 Answer
F
Faisal Khan
Answered 08/Feb/2015
New York is the banking capital of America. From the early days, the island of Manhattan has literally been the first port of call for all things banking. Investment Banks, Merchant Banks, Retails Banks and then Commercial Banks all took their roots in New York.
The gateway to American transfers (in or out) also happens to be New York. The same is true for foreign banks wishing to do business in the US, the first city of choice is New York.
Because all banks and Financial Institutions doing business in the State of New York are regulated (by NY's Department of Financial Services), a physical location is a must for any bank to obtain a license. There are no virtual licenses.
Think economy, the stock exchanges, the gateway element, etc. and New York would be the ideal place to setup a bank, for it is where the money is. Hence you see so many brick and mortar banks in NYC.
The gateway to American transfers (in or out) also happens to be New York. The same is true for foreign banks wishing to do business in the US, the first city of choice is New York.
Because all banks and Financial Institutions doing business in the State of New York are regulated (by NY's Department of Financial Services), a physical location is a must for any bank to obtain a license. There are no virtual licenses.
Think economy, the stock exchanges, the gateway element, etc. and New York would be the ideal place to setup a bank, for it is where the money is. Hence you see so many brick and mortar banks in NYC.