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International Banking. Concepts and examples. 1 Bank of Tokyo-Mitsubishi, Japan , 85,372  2 HSBC Holdings, UK , 76,357  3 Lloyds TSB Group, UK, 54,453  4 Citicorp, US, 53,822  5 Sumitomo Bank, Japan , 41,944  6 BankAmerica, US, 41,344  7 Dai-Ichi Kangyo Bank, Japan, 41,131 

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International banking

International Banking

Concepts and examples

World s biggest banks assets in billion of dollars 1998

1 Bank of Tokyo-Mitsubishi, Japan, 85,372 

2 HSBC Holdings, UK, 76,357 

3 Lloyds TSB Group, UK, 54,453 

4 Citicorp, US, 53,822 

5 Sumitomo Bank, Japan, 41,944 

6 BankAmerica, US, 41,344 

7 Dai-Ichi Kangyo Bank, Japan, 41,131 

8 Chase Manhattan, US, 40,363 

9 Fuji Bank, Japan, 38,440 

10 Sanwa Bank, Japan, 37,990 

11 NationsBank,  US 34,625 

12 Barclays, UK 32,426 

13 Industrial Bank of Japan 30,077 

14 Deutsche Bank Germany 29,142 

15 Union Bank of Switzerland 25,764 

16 Wells Fargo Bank, US 25,579 

17 ABN Amro Holding, Netherlands 25,168

18 First Union, US 23,617 

19 Hang Seng Bank, Hong Kong 23,088 

20 National Westminster Bank, UK 22,430 

21 Credit Suisse Group, Switzerland 22,361 

22 Abbey National, UK 22,144 

23 Sakura Bank ,Japan 21,229 

24 National Australia Bank 20,532 

25 Norwest, US 20,074




40 Royal Bank of Canada 13,430 

World’s Biggest Banks (assets in billion of dollars:1998)

World s financial centers
World's financial centers:

LondonTokyo New YorkParis, Frankfurt, Zurich, Amsterdam, etc.

Foreign exchange trading income of selected banks in millions of us
Foreign Exchange Trading Income of Selected Banks( in millions of US$ )

Company 1977 1987 1997 1998 1999

Bank of New York NA NA 109 126 137

Chase Manhattan 55 385 790 936 807

Citicorp 68 453 1,486 1,628 1,569

Credit Suisse First Boston NA NA 699 97 897

Deutsche Bank NA NA 1,040 636 807

Mellon Financial Corp 6 8 118 165 173

Morgan (J.P.) & Co. 40 251 493 781 777

Republic National Bank 5 39 98 120 141

State Street Bank 2 21 159 177 209

Reasons for international banking
Reasons for international banking:

  • International trade and investment

  • Low marginal costs

  • Arbitrage regulations

  • Defensive strategies

  • Limited domestic market

  • Risk reduction

A primer on import export payments

1. Exporter ships the goods

2. Importer pays after receiving the goods

A Primer on Import/Export Payments

Importer’s preference



International banking

2. Exporter ships the goods after payment

1. Importer pays the goods

A Primer on Import/Export Payments

Exporter’s preference



The bank as an export import intermediary

1. Importer obtains bank’s permission to pay on importer’s behalf

2. Bank promises exporter to pay on behalf of importer

4. Bank pays exporter

6. Importer pays bank

5. Bank releases merchandise to importer

3. Exporter ships to the bank

The Bank as an Export/Import Intermediary




A typical trade transaction

2. Exporter agrees to fill order importer’s behalf

1. Importer orders goods

6.. Exporter ships goods

7. Exporter presents shipping documents to bank X

3. Importer arranges L/C with bank I

5. Bank X advises exporter of L/C

12. Payment

4. Bank I sends L/C to bank X

11. Payment

8. Bank X presents shipping documents to bank I

9. Bank I accepts documents and promises to pay within 60 days

13. Investor presents documents and gets paid

10. Bank X sells acceptance documents

A Typical Trade Transaction



Bank X

Bank I

Public investor

Types of international banking offices
Types of international banking offices: importer’s behalf

  • Correspondent banks

  • Representative office

  • Foreign branch

  • Subsidiaries

  • Affiliates

  • Offshore banking centers

What is offshore banking
What is offshore banking? importer’s behalf

Excepts from and offshore banking ad:

IF you are wondering if Offshore Banks are Safe and Secure, you need not worry.

The jurisdictions we deal with have been in the banking business long before the U.S.A. even became a country.

Offshore jurisdictions do not recognize the U.S. legal system and therefore judgments lawsuits and collections are not a concern. These jurisdictions are also tax-free.

Total anonymity with complete and secure access. No U.S. Social Security or Tax I.D. number needed.

International banking

….more ads: importer’s behalf

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Etc, etc, etc…..

Offshore investing spawned an entire culture
Offshore investing spawned an entire culture importer’s behalf

The "BIBLE" on living a bureaucratic free life contains the following best selling publications :

  • P.T. # 1 - (Perpetual Traveler, Previous Taxpayer, Possibility Thinker, Prepared Thoroughly ...)

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Offshore banks
Offshore banks: importer’s behalf

operate outside the jurisdiction of most industrialized countries

are subject to very few regulations

are located in tax havens

Tax havens countries
Tax havens countries importer’s behalf

Tax avoidance exemplification
Tax avoidance: Exemplification importer’s behalf

Tax avoidance exemplification1
Tax avoidance: Exemplification importer’s behalf

Tax avoidance benefits
Tax avoidance: Benefits importer’s behalf

Lincoln belge gets a tax deduction

Old Abe gets a tax free interest income