project on international banking
- Thread starter swaprat
- Start date
Kalpana Heliya
Par 100 posts (V.I.P)
hELLO there,
U shud be able to dwnload the project. please try out again.
BASICS ON INTERNATIONAL BANKING:
INTERNATIONAL BANKING
Organisation
Historically banking industry has been more “multinational” in character. Today the giant international banks have their presence in more countries than giant corporations in other industries such as Sony, IBM, Philips etc.
•Physical presence enables, first hand on the spot, up-to-the minute study of the financial centres, despite advances in telecommunications
•Evaluation done by the bank’s own staff is more reliable than that obtained through correspondents/agencies for expediting disbursal of loans
•As client’s business becomes more multinational, it can serve its domestic clients better-making international payments, advising home clients on local regulations by being on the spot.
How do they establish their presence?
•Correspondent Banking: (a) a substitute for branches, maintenance of accounts (b)facilitate payments & collections (c) electronic funds transfer through SWIFT, CHIPS
•Resident representatives: (a)Business offices for providing information on creditworthiness (b) No regular banking
•Bank agencies: Is almost like a full fledged bank except it does not deal with local deposits. Functions are operating in the local money market, foreign exchange markets, clearing drafts, arranging loans etc
•Foreign branches: Like a local bank, subject to local and their head office regulations, compliance requirements and highly professional
•Foreign subsidiaries: A bank that is locally incorporated but partially or wholly owned by a foreign parent bank is a subsidiary bank
•Consortium banks: Joint ventures of a number of large international banks. They deal in investments, corporate and sovereign loans, involve in merger and acquisitions. Eg.BAYER A.G. acquired AVENTIS CROP SCIENCE an agrochemical giant of India for Rs 750 cr. Bridge loan granted by Banc of America securities Ltd, Deutsche Bank AG, J.P Morgan Plc.as a back up for issuance of Commercial Paper (CP). Bayer will become the largest company in the Rs 2700 cr Agrochem Sector and will see the emergence of a agrochem powerhouse in India –(December 27, 2001)
A number of foreign banks have been allowed to open branches in India and carry on various types of banking business. Indian banks too have their branches and representative offices.
INTERNATIONAL REGULATION OF COMMERCIAL BANKS
•Subject to (a) stringent prudential control to ensure integrity and soundness of the entire financial systems. (b)Local guidelines of the Central banking authority as well as regulations of the respective foreign banks, (I) in deploying customer’s funds, (ii)maintaining levels of liquidity, (iii)character of assets, (iv)exercising of kinds of provisions against doubtful loans etc