Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

The international banking market - Essay Example

Comments (0) Cite this document
Total cross-border claims continued to expand in the third quarter of 2005, although at a somewhat slower pace than in the previous two quarters. Interbank activity accounted for over half the total rise in cross-border claims, with greater claims on non-banks in offshore centers also contributing…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.2% of users find it useful
The international banking market
Read TextPreview

Extract of sample "The international banking market"

Download file to see previous pages International banking activity continued to expand , propelled by banks' substantial purchases of securities and the return of Japanese banks to the international banking market. The cross-border claims of banks in the reporting area increased by $110 billion .select few, most notably Mexico and Turkey. Another notable development in the first half of the year was a sharp increase in deposit flows from developing countries to international banks, arising from an improvement in the external position of oil-exporting countries..
Interbank activity slowed , as was to be expected following the extraordinary surge in lending to banks in the developed countries in the first quarter. To some extent, banks in the reporting area unwound the large interbank positions that they had built up during the first quarter, with funds moving from banking centres in the euro area to London and then being passed on
to Tokyo, Zurich, the Bahamas and the Cayman Islands. Despite flows from banks in the United Kingdom to their branches in the Caribbean, reporting banks' claims vis--vis banks in offshore centres continued to decline in the second quarter. ...
According to the consolidated banking statistics, Japanese and UK banks were responsible for most of the increase in reporting banks' claims on US banks
Deposits by developing countries soar
The ongoing contraction of bank credit to developing countries reflects in part weak demand for external financing. Despite strong growth in many countries, this year developing countries are expected to post their largest current account surplus in two decades. The strengthening external position of oil-exporting countries is responsible for most of the improvement. As well as limiting external financing needs, this improvement contributed to a large increase in developing countries' deposits with foreign banks.
Flows to US non-banks surpass those to euro area borrowers
Purchases of securities also accounted for most of the $57 billion rise in claims on non-bank borrowers in the second quarter. More recent data on syndicated credits show a surge in lending to telecom firms, suggesting that direct lending to non-banks in Europe may have also recovered. Banks in the reporting area continued to purchase substantial amounts of securities issued by non-bank borrowers in Europe. Nevertheless, international bank flows to non-banks in the euro area more than halved to $20 billion, Banks resident in the United Kingdom and the euro area, which had provided massive sums to non-bank borrowers in Banks' cross-border claims on non-banks in the United States have increased since late 1999.
Renewed lending by Japanese banks was funded in part through the international interbank market. Taking into account changes in both assets and liabilities, reporting banks moved upwards of $59 billion into banks in Japan in the second quarter, the largest increase in years. Further ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The international banking market Essay Example | Topics and Well Written Essays - 3250 words”, n.d.)
The international banking market Essay Example | Topics and Well Written Essays - 3250 words. Retrieved from
(The International Banking Market Essay Example | Topics and Well Written Essays - 3250 Words)
The International Banking Market Essay Example | Topics and Well Written Essays - 3250 Words.
“The International Banking Market Essay Example | Topics and Well Written Essays - 3250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The international banking market

International Banking the loan, lends somewhere else, therefore, diversifies the portfolio. The third reason concerns regulatory capital requirements; the ability of a bank to lend is subject to requirements that are both internal and external and keep a given percentage of its assets as envelop for its accessible loan requirements: known as Regulatory Capital Requirements.42 Lastly, it may be aiming at crystallizing a loss; this entails the case where the lender may decide to sell its commitments if the borrower runs into difficulties. In this regard, specialists dealing in distressed debts provide a market for such loans. However, prior to transfer, the lender ought to consider the implications of the...
18 Pages(4500 words)Assignment

International Banking: Funding Liquidity and Market Liquidity

...? International Banking Lecturer: Introduction The 2008 economic and financial recession sent the world’s economy into financial shock that has since then taken a great deal of financial resolutions as put forth by the world economists to ensure financial recover by a number of countries and enterprises. It marked the first global financial crisis to be experienced in the 21st century. From its impacts, it gained the name the Great Recession. A crisis is an urgent, difficult, or dangerous situation as may be rendered by factors such as the financial, economic, and political instabilities. The 2008 crisis is considerably the first crisis in the era of globalization, as caused by a number of factors which include funding liquidity... , and...
8 Pages(2000 words)Term Paper

International Banking

...? International Banking How to measure bank funding liquidity risk and market liquidity risk Banks over the years have been faced with crises emanating from various factors. A major player that has historically been associated with these crises is the funding liquidity risk. These are situations where a bank may not be in a position to meet its obligations with urgency or immediacy. This kind of risk will in most cases arise when revenues are not synchronised. It is important that the bank liquidity risk be measured in order to avoid crises in the future. Measuring bank liquidity risk incorporates the comparison of accumulated expected cash shortfalls for a given period of time with the stock available for funding the cash sources... ...
8 Pages(2000 words)Essay

Bank Regulations in Europe

...multifaceted effects on how Banks are run in Europe and the ultimate investments they deem as adequate for progressive growth. The controversy surrounding these regulations stems from past success as well as the impact recent recession ratios have imposed on the market. The question this analysis will attempt to address is whether or not these regulations are necessary for European banks to progress in the years to come. Part I: current regulation, Basel II 
 Basel II is the second of the Basel Accords. These are recommendations set by the Basel Committee on Banking Supervision. The point of these laws is to apply some regulation to the world wide...
16 Pages(4000 words)Essay

Study of Banking Crises and Failures

.... Banks also invest in real estate, commodities etc.By doing the above banks here do a vital task for the economy. They collect moneys from people who have no use for it and lent it to people who need it. Thus banks have a key role in playing an intermediary role in collecting savings and deploying them in the economy or overseas. Large and growing sizes of banking institutions which have assumed international proportions have ensured that their intermediation role has become critical, cross border and intertwined with operations of similar and other generic players in financial markets. A collapse of an international...
14 Pages(3500 words)Dissertation

International Banking

...International Banking International Banking International banking involves aspects in terms of services and operations involving the facilitation of international trade, loans, and grants to governments and other private institutions, and the manner in which money flows both for investments and for making payments. The United States banks involvement in international banking remains limited to the large banks in which the volume of the markets is concentrated. However, despite the late entry into international...
4 Pages(1000 words)Assignment

International Banking

...that prompt quick action. Systematic Risk-Adjusted Liquidity Model is based on a combination of various balance sheet and market data on option pricing situations and circumstances. Through this, systematic liquidity risks could be deduced. Finally, Macro-Stress Testing Model involves the evaluation of the impact of adverse macroeconomic financial situation in an economy to the situations of financial institutions. This gives a broad scope of signs that can be used to circumstantially deduce the level of liquidity risks in the financial statement. Bank Liquidity Risks and Bank Stock Returns “Empirical evidence indicates that aggregate liquidity conditions reflected by the SLRI affect...
6 Pages(1500 words)Essay

International Banking

...INTERNATIONL BANKING Introduction Question one: The relationship between market liquidity and funding liquidity risks for international banks The meaning of liquidity On one hand, liquidity refers to the extent to which a property or security can get purchased or sold in the marketplace devoid of touching the assets value. Equally, liquidity gets typified by a greater degree of trading functions (Evanoff 2007, 50). Therefore, assets that can get straightforwardly purchased or sold get referred to as liquid possessions. On the other hand, liquidity can also be defined as the capacity to change an asset to ready money swiftly. That process is called...
6 Pages(1500 words)Essay

Psychological Disorders

6 Pages(1500 words)Term Paper

International Banking

...International banking International banking is a monetary system that provides financial services such as lending and payment accounting to exotic customers. It has rapidly expanded for the last three decades. International banking has been significant in promoting financial globalization as well as integration. Furthermore, international banking is almost synonymous with international financial markets as both augment each other. These foreign customers can be either individuals or business companies. Individuals work with international...
9 Pages(2250 words)Research Paper
sponsored ads
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.

Let us find you another Essay on topic The international banking market for FREE!

Contact Us