金融英语课件李丽 马跃ISBN 9787810788175 PPTchapter_13.pptVIP

Chapter 13 International Banking Chapter 13 International Banking International business allows companies to diversify among various economies so that their performance is less dependent on economic conditions of any single country. This is the reason why many commercial banks are establishing branches around the world. Furthermore, the establishment of branches allows a bank to do business face to face with subsidiaries of multinational corporations. The global expertise of some of the larger banks distinguishes them from the small and medium banks and enables them to dominate business by attracting the large corporations. 1．The Evolution of International  Banking The environment for banks has changed greatly in the international arena. A striking increase in international borrowing and lending by domestic banks began in the 1970s with the expansion of world trade that occurred shortly after the first OPEC oil crisis. Not only did the amount of international lending increase, but also the number of participating banks. Petrodollars, as they came to be known, flowed into the OPEC nations in the payment for oil. In turn, the OPEC nations deposited a large part of these funds in U.S. and European banks in exchange for deposit claims. Many U.S. banks began to loan funds denominated in dollars to less-developed countries. In the early 1980s, a crisis arose when the less developed countries were unable to service their loans. As a result, many large banks had to write off or restructure these loans and incurred losses that took many years to be absorbed. Consequently, the 1990s have seen less emphasis on growth, more caution, and more emphasis on asset quality and rate of return. In the 1990s, the banking system has become truly international in scope. Advances in electronics and telecommunications allow domestic and foreign banks to participate in worldwide transactions without leaving home. Now, funds can easily be transmit