UNEC__1730168239.pptx.pptnohjhgghhhbjjbggg

Fi

1. INTERNATIONAL
BANKS
Leyla Mammadli

2. Globalization
Globalization influences the financial markets.
Example: a Japanese bank transfers funds from
savers in Japan to lend to a company that builds a
new factory in China- funds move between
countries.
Globalization increased rapidly since World War II
and has three causes:
many government leaders repealed laws that
restricted the free flow of investment between
countries;
countries are growing economically;
international corporations produce products in one
country and ship them to another.

3. International Bank
An international bank is a financial entity that
offers financial services, such as payment accounts
and lending opportunities, to foreign clients.
Foreign clients can be individuals and companies,
though every international bank has its own
policies outlining with whom they do business.
IB offer of services thatmeet the needs of a global
customer:
low fees
competitive exchange rates
multi-currency accounts
digital banking solutions

4. Strategic reasons for overseas banking
1.Customer seeking strategies
Customer seeking strategy- to obtain
new customers or to follow established
clients (barriers associated with the cross-
border selling of products and services)
The desire to establish a presence in
order to test the market.
Follow the leader strategy (motivation
for others to follow)

5. Strategic reasons for overseas banking
Customer following strategies (major
corporate customer enters a new market
Performance and efficiency advantages-
foreign expansion adds to overall firm
performance and shareholder value.
Managerial motives (international
investment decisions)
Government motives- Deregulation aime
(this should boost competition and
encourage domestic banks to become more
efficient)

6. International traiding
Countertrade- goods or services are
exchanged for other goods or services
rather than for hard currency.
Forfeiting - the seller assigns his claims
against the buyer to a specific credit
institution

7. Eurodollar
Deposits in European banks
denominated in dollars for the purpose
of international transactions are known
as eurodollars.
 The main center of the Eurodollar
market is London.
Soviet Union wanted better interest rates
on their Eurodollars from Italian Bank

8. SWIFT
SWIFT is a vast messaging network used
by financial institutions to quickly,
accurately, and securely send and receive
information, such as money transfer
instructions.
It is a messaging network that financial
institutions use to securely transmit
information and instructions through a
standardized system of codes

9. Top Five International Banks for
Worldwide Banking:
J.P. Morgan Chase&Co. (USA)
Bank of America (USA)
Citigroup
HSBC (UK)
Standard Chartered (UK)

10. Functions of International Banks
IB link savers and borrowers across different
countries.
IB help people and businesses engage in
international trade and finance.
IB stimulate financial innovation by creating
new financial instruments.
IB are concentrated in financial centers across
the world, such as New York City, Tokyo, and
London, and they operate 24 hours every day,
seven days a week.

11. Offshore Banking
Offshore account can include any bank account opened
outside the country of tax residence.Simply
withdrawing money to a foreign bank will not work:
only some states are loyal to depositing funds by non-
residents.
Only some countries are loyal to depositing funds by
non-residents, they are called offshore zones.
In order to attract foreign capital:
the tax rate for offshore companies has been reduced or
zeroed
control by inspection bodies has been minimized
the procedure for processing documents has been
simplified.

12. Most popular offshore banks
•in the British Virgin Islands (these are First
Caribbean International Bank, Scotiabank, VP Bank
(BVI) Limited and others);
•in Cyprus (for example, Bank of Cyprus, Piraeus
Bank, Hellenic Bank and others);
•in Panama (Multibank, Balboa Bank & Trust);
•in Liechtenstein (Valartis Bank (Liechtenstein) AG);
•in island countries (Mauritius, Seychelles and so on)
and in a number of other countries.

13. Most popular offshore banks
If the regulatory agency believes a bank is
participating in risky investments, the regulatory
agency has difficulty examining bank records for
subsidiaries located in offshore markets.
some wealthy people, businessmen, and criminals
hide their money in offshore accounts to evade
taxes, to protect their wealth from countries with
aggressive tax policies, or to hide their profits from
illegal business activities.