Chapter 1: International Banking: Functions, Theories, and Types
The following sections are included:
Introduction
Functions of International Banks
International trade finance
Interbank foreign exchange market
Participation in eurocurrency market
Sovereign lending
International investment banking
Theories of International Banking
Defensive expansion (Follow the customer)
Growth potential
Access to money market centres
International diversification benefits
Regulation considerations
Types of International Banking
Correspondent bank
Representative office
Foreign branch
Subsidiary and affiliate banks
Edge Act bank in the US
International banking facility for US banks
Offshore banking unit and offshore financial centre
Joint venture bank
Linkage Between Reasons for International Banking and International Banking Forms
Customer-driven international expansion
Scale economies
Regulation arbitrage
Diversification of asset and liability operations
Eurocurrency market access
References