The Board of Governors of the U.S Federal Reserve System has approved a proposal by the Bank of Nova Scotia to establish a new branch in Houston, Tex.

U.S. banking rules require that a foreign bank must obtain the approval of the board to establish a branch in the United Sates.

The proposed branch would replace the bank’s existing representative office in Houston. It would engage in a wholesale banking business, offering corporate investment, lending, and cash management services to existing and prospective customers.

The decision indicates that the Office of the Superintendent of Financial Institutions had no objection to the establishment of the proposed branch.