Kirt C. Butler国际金融课件 ch03.pptVIP

Part IIThe InternationalFinancial Environment Chapter 3International Financial Markets Liquidity is a financial market’smost important characteristic Liquidity - the ease of capturing an asset’s value Reflects a market’s operational efficiency Impacts a market’s informational and allocational efficiency The interbank foreign exchange market for large transactions is the world’s most liquid market Other market characteristics Maturity Short-term money markets Long-term capital markets Regulatory jurisdiction Single-country internal markets Multi-country external markets Middlemen Intermediated through a commercial bank Non-intermediated or direct to the public, through a broker or investment bank Foreign exchange marketsconducted through commercial banks Spot market Cash market with delivery in two business days Forward market Trade at a prearranged date and price Volume More than $1 trillion per day 75% is in the interbank market Intermediated marketsin bank deposits and loans International banks(ranked on percent of foreign assets) Foreign Total assets World Rank Commercial bank Country assets ($ billions) rank 1 American Express Bank U.S. 86.2% 11.6 456 2 UBS Switzerland 84.4% 747.2 21 3 Arab Banking Corp Bahrain 83.5% 26.6 156 4 Credit Suisse Group Switzerland 79.6% 609.6 36 5 Standard Chartered U.K. 69.6% 107.4 70 6 Deutsche Bank Germany 66.6% 809.2 12 7 ABN-AMRO Netherlands 65.2% 526.4 22 8 BNP Paribas France 63.5% 446.4 15 9 Investec South Africa 63.3% 23.3 255 10 KBC Belgium 57.9% 190.3 56 The Banker, February 2003 Eurocurrency markets Eurocurrencies Bank deposits and loans residing outside any single country Floating rate pricing usually with maturities less than five years Few regulatory restrictions because they are outside the jurisdiction of any single government Competitive pricing more than $2.5 trillion outstanding Eurocurrency markets are dominated by domestic issuers Eurodollar