《金融市场与机构 Jeff Madura》ch21.pptVIP

21 International Banking Chapter Objectives Describe key regulations that reduced competitive advantages of banks in particular countries Describe the risks of international banks Describe bank solutions to the international debt crisis Describe how banks assess country risk when they consider lending funds to foreign countries International Expansion Banks go global for several reasons Diversify among economies to become less dependant on a single country’s conditions Do business face-to-face with multinational corporations and their subsidiaries International expansion by U.S. banks U.S. bank regulations limited interstate banking Expansion and growth via international banking International Expansion How U.S. banks expand overseas Establish branches Must first receive approval of the Federal Reserve Board in the U.S. U.S. banks’ presence largest in the U.K. Deposits in foreign branches are not insured Agencies are an alternative that can make loans but not accept deposits or provide trust services International Expansion Non-U.S. banks expand into the United States and focus on corporate rather than consumer banking Provide service to the subsidiaries of non-U.S. corporations 1913 Edge Act creates corporations that specialize in banking and foreign transactions allowing loans and accepting deposits only if specifically related to international transactions Global Bank Regulations Countries have a system of monitoring and regulating commercial banks Division of regulatory power between the central bank and other regulators varies among countries Canada Europe Japan Global Bank Regulations Standardizing the rules with uniform regulations helps globalize the financial system Playing field leveled by three regulatory changes The International Banking Act requiring all banks within the U.S. follow the same rules Single European Act Uniform capital adequacy guidelines Global Bank Regulations Uniform regulations for banks operating in the U.S. International Banking