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

Option adjusted spread, The formula explained in the above paragraph ...

The formula explained in the above paragraph enables the investor to compute the value of a bond with an embedded option as the difference between the value of an

Classification of the cost, 1) Future cost and historical cost: financial ...

1) Future cost and historical cost: financial decision is based on the future cost and not on the historical cost. The decision related to the future and hence the cost are likely

What do you know about sinking funds, Q. What do you know about sinking fun...

Q. What do you know about sinking funds? sinking funds : quite often, one may be interested to accumulate a target amount over a given period inclusive of interest for the peri

The value of the quick ratio, Dev's Spa has cash of $50, accounts receivabl...

Dev's Spa has cash of $50, accounts receivable of $60, accounts payable of $200, inventory of $150 and accured expenses of $100. What will be the value of the quick ratio?

Explain exchange rate affect the return from foreign market, Explain how ex...

Explain how exchange rate fluctuations influence the return from a foreign market measured in dollar terms. Discuss the empirical proof on the effect of exchange rate doubt on the

Dual-indexed floaters, In dual indexed floaters the coupon rate is a ...

In dual indexed floaters the coupon rate is a fixed rate plus the difference between two reference rates. Purchasers of these securities typically make an assumpt

Define interbank currency trading worldwide use us dollar, Why does most in...

Why does most interbank currency trading worldwide involve the U.S. dollar? Answer:  Trading in currencies worldwide is in opposition to a common currency which has international

Viability of project - syringe management, The syringe management program t...

The syringe management program tries to educate society by increasing the capacity and quantity of the syringe disposable centers , providing timely responses to all syringe compla

What are financial centers?, Banks and brokerage firms are measured financi...

Banks and brokerage firms are measured financial centers

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