Reference no: EM131004344 , Length: 2500 Words

Financial Markets and Institutions - Assignment

Below is your assignment for this subject. Please read the brief and instructions thoroughly.

• Your task is to read the article "Globalising International Banking" and to consider additional, contemporary articles about international and global banking. Then write a report which addresses the following:

o The principal difference between international banking and global banking.

o Ways in which a bank headquartered in one country can fund loans to a borrower in another country.

o The ratio of locally funded foreign assets to total foreign assets is referred to in the reading. What value will this take for a pure global bank? What will be the value for a pure international bank? Why?

o Reasons for the movement away from international and towards global banking since the 1980s. Is there a trend back from global to international banking? What evidence do you have to support your view?

o Differences between Transfer Risk and Country Risk. How does global banking diminish Transfer Risk?

o During the Argentine crisis, USD deposits and USD loans were treated differently by the Argentine authorities. Deposits remained in USD,

while loans could be repaid in pesos at a devalued exchange rate. What are the implications of this for global banking strategies?
In order to do well in this assignment you need to read more than only the article provided. Make sure you include up-to-date information about the issues and highlight how and why international banking has changed.
The article that forms the basis for this assignment is:

McCauley R N, Ruud, J S and Wooldridge P D, 2002, Globalising International Banking, Bank for International Settlements Quarterly Review, March, p41-51

The article can be found here: https://www.bis.org/publ/qtrpdf/r_qt0203e.pdf
o This assessment is an individual assessment (ie this is not a group assessment). Please ensure you avoid collusion and other practices which compromise individual assessment work. (Refer to the Academic Integrity Policy available on AIB website)
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Important Assignment Instructions

o The required word length for this assignment is 2500 words (plus or minus 10%).
o In terms of structure, presentation and style you are normally required to use:
- AIB standard report format; and
- AIB preferred Microsoft Word settings; and
- Harvard style referencing (which includes in-text citations plus a reference list).

These requirements are detailed in the AIB Style Guide.

o Reference lists for AIB assignments / projects normally contain the following number of relevant references from different sources: 6-12 (for MBA assignments).

o All references must be from credible sources such as books, industry related journals, magazines, company documents and recent academic articles.

o Your grade will be adversely affected if your assignment contains no/poor citations and/or reference list and also if your assignment word length is beyond the allowed tolerance level (see Assessment Policy available on AIB website).

o Useful resources when working on your assignments include: