--%>

Characteristics of international and domestic banks

Explain characteristics of the international and the domestic banks.

E

Expert

Verified

Two main distinctive characteristics between the international banks and the domestic banks are types of deposits they admit and loans and investments they make. Large international banks both lend and borrow in Eurocurrency market. Furthermore, depending on regulations of country in which it operates and its organizational type, the international bank can participate within the underwriting of Eurobonds and the foreign bonds.  In United States, only the investment banks and companies holding their investment banking operations are permitted to participate within the underwriting of the international bonds.
International banks consecutively grant consulting services and also advice to their clients within the areas of exchange hedging strategies, currency swap financing and interest rate, and international cash management services. All international banks do not supply all the services.  Banks which do grant majority of these services are termed as full service banks or universal banks.

   Related Questions in Financial Accounting

  • Q : Exposure is the regression coefficient

    Discuss the given statement: “Exposure is the regression coefficient”.

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

  • Q : APV capital budgeting framework How APV

    How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?

  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

  • Q : Political events affecting the local

    Discuss about the different ways in which the political events in the host country affects the local operations of MNC.

  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

  • Q : Forward cross-rates in German terms

    Compute 30-, 90-, and 180-day forward cross exchange rates between German mark and Swiss franc by utilizing the most recent quotations.  Specify forward cross-rates in “German” terms.

  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

  • Q : Random walk model for exchange rate

    Explain about random walk model for exchange rate forecasting. Will it be reliable with the technical analysis?

  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?