We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Financial Markets: Distinguishing between international banking and global banking - Assignment Example

Comments (1)
Distinguishing between international banking and global banking is a difficult task owing to similarity of identities in their application as the two concepts look analogous in a general sense. However, when a micro level examination of the functioning of the fund management system is carried out, it is clear to identify the diverging point of both streams…
Download full paper

Extract of sample
Financial Markets: Distinguishing between international banking and global banking

Download file to see previous pages... Straightly speaking, international banking deals with collection funds in favor of a target client in a foreign country while global banking refers to gathering funds for financing the claims of foreign borrowers from within the same country.
Business transactions of both of them differ in the function fund distribution and risk allocation strategy. International banking borrows directly from another country; in this regard, the lender country collects funds by obtaining deposits from residents and transfers it on term bases. Global banking, on the other hand, recruits different bodies in the borrowing country for attracting potential local depositors and distribute the fund thereby. In the international banking deal, the funding system starts with a foreign saver and the deposit flows to the head office in the lending country. During transfer it is considered as an international loan and the currency exchanged is subject to value variations. Though this scenario is common in both aspects, it is more directly felt in international banking.

b) A strict choice between both international and global banking has to be exercised while allocating fund flow on debt basis to a foreign country. Feasibility of Japan’s financial structure to repay the debt must be the first concern while considering the scope of a viable transaction in the money lending. There are five ways in which a fund transfer on debt basis is possible from a USA based banker to a Japan borrower. In the first banking option, i.e., in International Banking, savers among residents of the USA are invited for their investment in the process as deposits which reach the Head Office in the country and the amount collected can be transferred as loan across the border. The borrower who receives the money directly essentially has to be Japanese in this regard.
On the other hand, savers’ deposit in various branches of the US owned banks travel in the similar way but when reaching the international banking process, the deposit must go to an American Banking franchise which allots the loan to the borrower. But the difference is felt when the bank regulates the fund according to the US norms. A USA banker can also receive deposit from the Japanese keeping a head office as the main frame and return the fund as loan to the borrower in another case of international banking. In this system, the functioning becomes easier between the two countries and cross border transaction is only subject to value exchange variables of the two currencies.
In the global banking system, the head office’ interference is omitted as the loan amount is raised either solely by the US affiliate bank which raises fund from the depositors in Japan. And the final way is by the transfer of US saver’s deposit straightly US affiliate bank in Japan which goes as loan to the borrower. c) The positions mentioned by global banking systems take acute care for the consideration of currency values of different countries. From the analysis of functional banking strategy, it is easily ascertained that global banking has an edge over purely international banking. The asset value analysis is normally done with the aid of banking approximations adjusted with the BIS norms. Locally funded claims are expected to be at a lower value than the total value of local claims and ...Download file to see next pagesRead More
Comments (1)
Click to create a comment
greenholtleonor added comment 1 month ago
Student rated this paper as
I had an issue with a assignment types of works. All until I came across this website and this particular document. Even though "Financial Markets: Distinguishing between international banking and global banking" is far from my studies, the structure is so great that I use it all the time as an example for my own works.
International Banking
8 2.0SECURITY FOR SECURED SYNDICATED LOANS IN AN INTERNATIONAL CONTEXT 10 2.1 Introduction 10 2.2 Overview of Common law and civil law jurisdiction with regard to secure syndicated loans 11 2.3 Different mechanisms used in the transfer of secured syndicated debts 11 2.4 Forms of transfer 14 1.0 REGULATION OF BANKS 1.1 Introduction The globalization of banking markets has led to vital issues pertaining to corporate governance regulation for banking institutions, as a way of enhancing business activities, and safeguarding the customers’ interests.
18 Pages(4500 words)Assignment
International Banking Law and Capital Markets
Some also argue that compliance with the new framework would actually involve competitive disadvantage! Critically evaluate this statement. Introduction The Basel 111 reflects the global authority concerning capital adequacy ratio, stress test market risk, credit risk and liquidity risk of the banks mutually agreed upon by the members of the Basel Committee on Banking Supervision in the year 2010 and in the subsequent year 20111.
16 Pages(4000 words)Assignment
Mortgage Backed Security (MBS) is an example of securitization as supported by Abuzz & Berliner (2007). This is an example of an asset backed security which is secured by a collection of mortgages. The procedure operates as follows: first of all, there is a regulated and authorized organization originating numerous mortgages.
4 Pages(1000 words)Assignment
Money, Banking, and Financial Markets
But for the fulfillment of both of these motives, demand for money depends on income. People also prefer to hold money as an asset for speculative purposes. The speculation depends on the interest rates and income since they are volatile in nature. For example, people hold more money when they expect a fall in bond price which will result in negative income, so as to meet the contingencies that would be arising at that point of time.
10 Pages(2500 words)Assignment
Islamic banking and financial in a global economy
The role of shariah compliant institutions and the Islamic Rating Agency for regulatory and monitory purposes is also highlighted. The Islamic financial sector has been robust in the last few years and is expected to continue a possible high
6 Pages(1500 words)Assignment
Banking financial management
The increase in value of a company means the well-being of the entire company since all its beneficiaries for example; company officials, shareholders and all the
6 Pages(1500 words)Assignment
Global banking issues
The increase in reserve requirement helps the central bank to limit multiple deposits expansion in the banking systems. In the United States, commercial banks borrow reserves from Fed when the federal fund rate is higher than
2 Pages(500 words)Assignment
The challenges in the stock market have indicated many people seeking other options in dealing with the challenges in the stock market. Among the many assets that the banks have advised people to
5 Pages(1250 words)Assignment
Money, Banking, and Financial Markets
The index has increased by 268 points since last year that is equivalent to 11% (The Globe and Mail Par 2). There are signs of more growth with the Central bank stepping up its efforts to ensure the growth is sustained. The global financial
9 Pages(2250 words)Assignment
Critically evaluate the reforms that have taken place in the UK banking sector over the last number of years. Your essay should, as a minimum, cover the following three elements: legislative, policy and institutional
The services provided by the banking sector are supportive in the allocation of capital and production of goods. Each of these services is essential to the well functioning of the economy. These financial services are timeless.
23 Pages(5750 words)Assignment
Let us find you another Assignment on topic Financial Markets: Distinguishing between international banking and global banking for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us