International bank branches in Miami increased loans by $790.8 million, or 12.86 percent, in 2014. That’s a $338 million increase over the loan growth seen in 2013, despite ever-increasing compliance and regulatory requirements. Miami is seen as a hub of international finance and banking, said John Harriman, COO of the Miami-based Florida International Bankers Association (FIBA). But while the regulatory and compliance environment remains what it is today, it’s unlikely that there will be new international bank branches entering the market. Federal Reserve data shows that nine of the 16 branches of international banks in Miami grew loans in 2014, while the other seven saw loans drop.
Meanwhile, deposit growth at the 16 banks slowed in 2014 with only a 6.28 percent increase in the year compared to the 7.7 percent increase in deposits in 2013. The deposits at these international bank branches are largely from foreign customers who may live part of the year in the region or do business here, although these institutions can grant loans to domestic clients. Click here to see a database for the full statistics on assets, loans, deposits and noncurrent loans at Miami’s international branches. The Spanish Banco Sabadell saw the greatest increase in loans, jumping from $1.39 billion at the close of 2013 to $2.2 billion at the end of 2014. That reflects nearly 52 percent loan growth, the highest amongst all 16 bank branches.
French BNP Paribas’ numbers show an opposite story. Loans decreased from $335.9 million at the close of 2013 to 0 at the end of 2014, and deposits shrunk from $703.7 million to $6.98 million in the same time period. That’s because BNP Paribas is exiting the market, Harriman said. “I don’t foresee a growth of foreign banks coming into Miami in the next year, not in the existing regulatory environment,” Harriman said. “It will be a while before we see any foreign banks coming this way,” he said. The 16 international bank branches on this list give only a glimpse of what the international banking environment is like in Miami, and while foreign banks may be waiting to enter the market, wealth management is a sector that is growing.
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