1 / 7

Introduction to International Banking

Introduction to International Banking. Key Concepts. Bretton Woods Agreement- designed to provide coordination of monetary policy among the major world economies International Monetary Fund (IMF) World Bank

liv
Download Presentation

Introduction to International Banking

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction to International Banking

  2. Key Concepts • Bretton Woods Agreement- designed to provide coordination of monetary policy among the major world economies • International Monetary Fund (IMF) • World Bank • General Agreement on Tariffs and Trade(GATT)[and now it’s successor the World Trade Organization(WTO)] • Eurocurrency and Eurobond Markets • London Interbank Offered Rate (LIBOR) • Universal banking

  3. Introduction • Linked to the development of world trade, the process of urbanization, and the rise of the nation-state. • Banking transactions crossing national boundaries • Essential prerequisites for international banking is • The rule of law • Political stability • Large-scale economies with depth and scope to support major international banking hubs

  4. History of International Banking • Origin in Renaissance (lending to kings) • Active international lending and bond market in the 19th century • Growth of trade and multinationals postwar • Development of euromarkets in the 1960s

  5. Reasons for international banking • Business contacts • Potential for increasing returns to scale and self sustaining growth of centres • Location of customers • Pool of skilled labour • Trades and professions • Liquidity and efficiency of markets

  6. Reasons for international banking • Interrelation of markets (e.g. derivatives and underlying) • Input cost differences (e.g. in cost of domestic funding)

  7. Features of International banking • Competition for market share among Banks • Competition for bank loans from the international bond market • Importance of international interbank market (IIBM) as source of liquidity and funding for banks, and risks arising

More Related