Abstract
Foreign commercial banks seeking to establish a multi‐state presence in the US have followed different approaches, including the use of loan production offices (LPOs) examined here. These are used primarily to facilitate off‐premise lending to borrowers outside the local service area, and are authorised to undertake all aspects of loan production except final approval and disbursement of funds. The policies regarding LPOs established by different states vary from complete prohibition to virtually unrestricted entry.
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