CBB Bank has received approval from the Federal Reserve to open a new branch in Fort Lee, New Jersey, marking the bank’s first expansion into the Eastern United States.
The Federal Reserve announced the decision on its website on March 21. It confirmed approval of the application that CBB Bank submitted in September 2023.
First Eastern U.S. Branch
The new branch will open at 1 Bridge Plaza N, Suite 655, in a downtown Fort Lee office building. Based in Los Angeles, CBB Bank currently operates in California, Hawaii, and Texas. The Fort Lee branch will act as a strategic launch point for East Coast operations.
“This Federal Reserve approval is the final step in the branch approval process,” a CBB Bank representative said in a phone interview with The Korea Daily. “Although the opening date has not been confirmed, we expect to hold a grand opening soon.”
Fed Cites Key Approval Criteria
The Federal Reserve reviewed several factors before approving the application. These included the bank’s financial condition, capital adequacy, expected earnings, and the potential for improving local access to banking services.
Fort Lee is one of New Jersey’s most densely populated Korean American communities. Several Korean banks already serve the area. These include New Millennium Bank, Hana Bank USA, Bank of Hope, and Hanmi Bank. In addition, New York-based Woori America Bank, Shinhan America Bank, and NewBank have branches in Fort Lee. Georgia-based Metro City Bank also operates there, creating a highly competitive environment for Korean American banks.
Fed Governor Calls Out Delays
Michelle Bowman, a Federal Reserve Board member recently nominated by former President Donald Trump to become Vice Chair for Supervision, issued a separate statement on the approval.
In her remarks, Bowman said the regional Federal Reserve Bank could have processed the application within 30 days. However, a single citizen’s objection escalated the review to the full Board. As a result, the final decision was delayed by nearly six months.
“This case highlights the need to review procedural responses to objections,” Bowman wrote. “Such delays can hinder the application process.”
BY WONHEE CHO [cho.wonhee@koreadaily.com]
