Briefly discuss some services which international banks provide their customers & the market place.
International banks can be considered by the sort of services they provide that distinguish them from domestic banks. Foremost, international banks facilitate the imports & 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 assisting in hedging exchange rate risk in foreign currency receivables & payables through forward & options contracts. As international banks have established trading facilities, generally they trade foreign exchange products for their own account.
Two major features between domestic banks and international banks are the sort of deposits they accept & the loans and investments they make. Large international banks borrow and lend both in the Eurocurrency market. Moreover, based upon the regulations of the country wherein it operates and its organizational type, an international bank might participate in the underwriting of Eurobonds and foreign bonds. In the U.S., only investment banks and the investment banking operations of bank holding companies are allowed to participate in the underwriting of international bonds.
International banks often provide consulting services & advice to their clients in the areas of exchange hedging strategies, interest rate & currency swap financing, and international cash management services. Not all international banks provide all of the services. Banks which do provide a majority of these services are named as universal banks or full service banks.