Federal Reserve Approves Honduran Bank ELGA to Open Miami Office
The Federal Reserve has approved Honduran cooperative bank ELGA to open a representative office in Miami.
The office will market services and support customers, but cannot take deposits or issue loans.
Regulators said the limited U.S. presence does not pose a financial stability risk.
Miami Expansion Gets Green Light
MIAMI, FL (STL.News) The Federal Reserve on February 12, 2026, approved an application by Cooperativa de Ahorro y Crédito ELGA, Ltda. (ELGA), Headquartered in Tegucigalpa, Honduras, to establish a representative office in Miami, Florida.
Under the International Banking Act, foreign banks must receive Federal Reserve approval before opening a representative office in the United States. The Fed confirmed the public comment period expired with no objections filed.
The Miami office will mark ELGA’s first location outside Honduras. CLICK to view documentation.
What the Miami Office Can — and Cannot — Do
The approved office will operate strictly as a representative office, not a full-service branch.
It may:
- Promote and market ELGA’s products
- Act as a liaison for U.S.-based customers
- Provide administrative and customer service support
- Conduct limited bank-office functions
It may not:
- Accept deposits
- Issue loans
- Engage in core banking activity
This structure significantly limits regulatory and financial risk.
About ELGA
ELGA operates as a member-owned cooperative banking institution in Honduras with approximately $355 million in assets as of mid-2025.
Key facts highlighted in the Fed order:
- Largest cooperative banking institution in Honduras
- 12th largest banking institution overall in the country by asset size
- Structured as a not-for-profit cooperative
- No single member controls more than 5% of voting shares
Membership is open to Honduran nationals and residents aged 16 and over, including Hondurans living abroad—a factor that likely supports the need for a U.S. liaison office in Miami.
Regulatory Review and Oversight
Because the Miami location is only a representative office, the Fed applied a lesser supervisory standard than would be required for a branch or agency.
ELGA is supervised in Honduras by CONSUCOOP, which:
- Conducts on-site examinations
- Reviews consolidated financial reports
- Monitors capital, liquidity, and risk exposure
- Has the authority to impose corrective measures
The order also references anti-money laundering oversight coordinated with Honduras’ financial regulators, including compliance with international standards aligned with FATF recommendations.
ELGA is committed to providing U.S. regulators with the necessary access to information about its operations and affiliates, upon request.
Financial Stability Considerations
The Federal Reserve concluded that ELGA’s limited U.S. footprint and the restricted scope of its activities do not pose a risk to the stability of the U.S. financial system.
Because representative offices cannot take deposits or extend credit, their role is primarily informational and administrative rather than financial intermediation.
Why Miami Matters
Miami serves as a major financial gateway between the United States and Latin America. For institutions serving expatriate or cross-border customers, a representative office can facilitate communication, marketing, and customer support without directly entering the U.S. banking system.
For ELGA, the Miami presence may strengthen relationships with Honduran nationals living in the United States while maintaining its core operations in Honduras.
What Happens Next
Federal approval allows the office to move forward, though Florida state regulators retain authority to license and oversee the physical location.
The approval is conditional, and the Fed retains authority to terminate U.S. operations if access to supervisory information is restricted or compliance issues arise.
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