国际金融英文-精品·公开课件.pptVIP

Chapter 13 International banking, debt, and risk The specific objectives: Introduction to Eurocurrency market International risk and crisis * Eurocurrency market Background of Eurocurrency market(offshore financial market) Definition: the international deposit and loan market. The development of Eurocurrency market London international financial market New York, Zurich, London Eurocurrency market * Traditional international financial market Eurocurrency market Eurocurrency market(cont.) The reasons for Eurocurrency market: Communist Countries did not want to hold dollars in U.S. banks for fear of reprisal “Regulation Q” of the Fed English Government control to pounds (pound crisis) Demands to capital increase Eurodollar market Eurocurrency market * Eurocurrency market(cont.) Advantages of Eurocurrency market: offer higher interest rates on deposits(floor) and lower interest rates on loans(ceiling) no government-mandated interest rate controls, no deposit insurance, no government-mandated credit allocations, less deposit reserve (credit multiplier) * Eurocurrency market(cont.) less restrictions on entry of new banks, and low taxes lower credit risk less service charge (trading volume) More financial innovation * Eurocurrency market(cont.) Some terms Eurodollar: US-dollar denominated deposits at foreign banks or foreign branches of American banks. Eurocurrency (Euromoney): currency held in banks outside of the country where it is legal tender. * Eurocurrency market(cont.) Eurobank: a financial institution that readily accepts foreign currency denominated deposits and makes foreign currency loans. Offshore banking: provide foreign currency borrowing and lending services. International banking facilities (IBFs) (1981) * Eurocurrency market(cont.) London Interbank offering rate (LIBOR) The British Bankers’ Association fixes a value for LIBOR each day at 11:00 A.M. for each major currency * International Lending and Crisis Latin American deb