Define the services that international banks provide, Financial Management

Assignment Help:

Briefly discuss some of the services that international banks provide their customers and the market place.

Answer:  International banks can be categorized by the types of services they offer that differentiate them from domestic banks. Primary, international banks make easy the imports and exports of their clients by arranging trade financing. In addition, they serve their clients by arranging for foreign exchange essential to conduct cross-border transactions and make foreign investments and by helping in hedging exchange rate risk in foreign currency receivables and payables by forward and options contracts. As international banks have established trading facilities, they usually trade foreign exchange products for their own account.

Two main distinguishing features among domestic banks and international banks are the sorts of deposits they accept and the loans and investments they make.  Large international banks both the lend and borrow in the Eurocurrency market.  Furthermore, depending on the regulations of the country where it operates and its organizational type, an international bank might contribute in the underwriting of Eurobonds and foreign bonds.  In the United States, only investment banks and the investment banking operations of bank holding companies are permitted to participate in the underwriting of international bonds.

International banks often offer consulting services and advice to their clients in the areas of interest rate, exchange hedging strategies and currency swap financing, and international cash management services.  Not all international banks offer all services.  Banks that do offer a majority of these services are termed as universal banks or full service banks.


Related Discussions:- Define the services that international banks provide

State the several goals for the organisation, State the several goals for t...

State the several goals for the organisation As there could be several goals for the organisation, we must try and summarise theorganisational goals in financial terms so that

Steps in budgetary control, STEPS IN BUDGETARY CONTROL 1. Quantificati...

STEPS IN BUDGETARY CONTROL 1. Quantification of plans in relation to sales, production, distribution and finance in terms of objectives and goals set by the management. That i

Agency relationship, Solutions to shareholders and government agency proble...

Solutions to shareholders and government agency problemquestion #Minimum 100 words accepted#

Limitations of the cash flow yield measure, Bond's potential re...

Bond's potential returns are calculated using measures like Yield to Maturity (YTM) and cash flow yield. Both these measures are not free from s

Determine the factors which common stockholders consider, What are some of ...

What are some of the factors which common stockholders consider while deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Comm

Major advantages of preparing a statement of cash flow, QUESTION 1 ...

QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina

Cost of capital, Q. Cost of capital? The terms of cost of capital refer...

Q. Cost of capital? The terms of cost of capital refers to the minimum rate of the return a firm must earn on its investment so that the market value of the company equity shar

Calculate the present value and determine the npv, Assume today is 3 Decemb...

Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently employed as a personal banker for ANZ banking group in Sydney and earns $380

Explain interest rate risk, Explain Interest rate risk Interest rate r...

Explain Interest rate risk Interest rate risk considers to interest rates changing not favorably before the swap dealer can lay off with an opposing counterparty the unplaced

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd