商業(yè)銀行管理Chap020課件

1、Chapter TwentyInternational Banking and the Future of Banking and Financial ServicesChapter TwentyInternational BaKey TopicsTypes of International Banking Organizations Regulation of International Banking Foreign Banking Activity in the United States U.S. Banks Operating AbroadServices Provided by I

2、nternational Banks Managing Currency Risk Exposure Challenges for International Banks in Foreign Markets The Future of Banking and Financial ServicesKey TopicsTypes of InternationTypes of International Banking OrganizationsRepresentative OfficesLimited-service facility: markets home-office services;

3、 does not take deposits or book loansAgency OfficesDoes not take deposits from the public but extends commitments to make or purchase loansBranch OfficesThe most common organizational form for most international banks: a local office that represents a single large financial-service corporationTypes

4、of International BankingTypes of International Banking Organizations (continued)SubsidiariesForeign subsidiary possesses its own charter and capital stock; may not necessarily close down if its principal owner failsJoint VenturesBank concerned about risk exposure in entering a foreign market alone m

5、ay choose to enter into a joint venture with a foreign financial firm, sharing both profits and expensesTypes of International BankingTypes of International Banking Organizations (continued)Edge Act CorporationsDomestic US companies owned by the US or foreign bank but located outside of he home stat

6、e of the bank that owns them; limited to international transactionsAgreement CorporationsSubsidiaries of a bank organized under Section 25 of the Federal Reserve Act; devote the bulk of their activities to serving international customersTypes of International BankingTypes of International Banking Or

7、ganizations (continued)International Banking Facilities (IBF)Computerized account records that are not part of the domestic US accounts of the bank that operates themShell BranchesOffshore locations established in order to escape the burden of regulationTypes of International BankingTypes of Interna

8、tional Banking Organizations (continued)Export Trading Companies (ETCs)The Export Trading Company Act (ETCA) allowed U.S. banking firms and Edge Act corporations to create ETCs; these specialized firms must receive over half their income from activities associated with exporting goods and services f

9、rom the United StatesTypes of International BankingRegulation of International BankingInternational banking activities are closely regulated by both home and host countriesA strong trend toward deregulation of banking and the related fields of securities brokerage and underwriting took place from th

10、e 1960s to the 1990sChanging regulatory rules have contributed to a more volatile international economyRegulation of International BaRegulation of International Banking (continued)HarmonizationThe coordination of various nations in their regulatory activities so that all financial firms serving inte

11、rnational markets will operate under similar rulesRegulation of International BaGoals of International Banking RegulationProtecting the Safety of Depositor FundsPromote Stable Growth in Money and CreditForeign Exchange ControlsRestrict the Outflow of Scarce CapitalProtect Domestic Financial Institut

12、ions and Markets from Foreign CompetitionGoals of International BankingRegulation of Foreign Bank Activity in the U.S.International Banking Act of 1978Branches and agency offices of foreign banks must secure federal licenses for the US operationsForeign branching in the US is regulated, with a desig

13、nated home stateLarger foreign branches and agencies ($1 billion) are subject to legal reserve requirementsRegulation of Foreign Bank ActRegulation of Foreign Bank Activity in the U.S. (continued)Foreign Bank Supervision Act of 1991Tighter control of foreign bank operations in the US. Empowered the

14、Fed to examine the US offices and affiliatesInternational Lending and Supervision Act of 1983Federal regulatory agencies should prepare capital and lending rules for US-supervised banksBasel AgreementCalls for all banks to achieve a minimum total-capital-to-total risk-adjusted assets ratioRegulation

15、 of Foreign Bank ActServices Supplied By Banks in International MarketsThe variety of services international banks and their strongest competitors offer has expanded in response to evolving customer needs and intense international competitionServices Supplied By Banks in TABLE 201 Key Customer Servi

16、ces Offered by International BanksTABLE 201 Key Customer ServicServices Supplied By Banks in International Markets (continued)Making Foreign Currency (FOREX) Available to CustomersCustomers require sizable quantities of currencies to pay for imported goods and raw materials, to purchase foreign secu

17、rities, and to complete mergers and acquisitionsOther customers may receive foreign-currency or foreign-currencydenominated deposits from businesses and individuals abroad who purchase their products or securitiesThese foreign funds must be exchanged for domestic currency and depositsServices Suppli

18、ed By Banks in Services Supplied By Banks in International Markets (continued)Making Foreign Currency (FOREX) Available to CustomersFOREX trading activity among commercial and investment bank dealers has sharply increased due to volatility among leading currenciesTrading volume often exceeds a trill

19、ion dollars a day and is climbingProprietary TradingWhen dealers speculate on the prices of selected currenciesServices Supplied By Banks in Services Supplied By Banks in International Markets (continued)Hedging Against Foreign Currency Risk ExposureCurrency risk is the potential for loss due to flu

20、ctuations in currency exchange ratesCustomers are not the only ones who face currency risk; international banks themselves must deal with exchange rate risk exposureServices Supplied By Banks in Services Supplied By Banks in International Markets (continued) Hedging Against Foreign Currency Risk Exp

21、osure Currency risks arise most often in international banking whenMaking foreign currencydenominated loans to customersIssuing foreign-currencydenominated IOUs (such as deposits) to raise new fundsPurchasing foreign-issued securitiesTrading in foreign currencies for a banks own currency position as

22、 well as for the needs of its customersServices Supplied By Banks in Services Supplied By Banks in International Markets (continued)Hedging Against Foreign Currency Risk Exposure The net exposure of a bank or its customers to fluctuations in currency values can be determined from the following equat

23、ionIf Net Exposure 0, the bank is long on currency i and if Net Exposure 0, the bank is short currency i. Services Supplied By Banks in Services Supplied By Banks in International Markets (continued)Hedging Against Foreign Currency Risk ExposureInternational banks typically employ a wide variety of

24、currency-hedging techniques to help shelter their own and their customers risk exposureThe most widely used of these currency-risk management techniques includeForward ContractsA customer works through a bank to negotiate a contract calling for the delivery of a particular currency at a stipulated p

25、rice on a specific future dateCurrency Futures ContractsContracts promise delivery of stipulated currencies at a specified price on or before a terminal date (long hedges and short hedges)Services Supplied By Banks in Services Supplied By Banks in International Markets (continued)Hedging Against For

26、eign Currency Risk ExposureCurrency OptionsRight but not an obligation to deliver of take delivery of a designated FOREX futures contracts at a set price any time before the option expiresCurrency SwapsContract between two parties to exchange one currency for another and help reduce the risk of loss

27、 as currency prices changeServices Supplied By Banks in EXHIBIT 203 A Straight CurrencyEXHIBIT 203 A Straight CurrenServices Supplied By Banks in International Markets (continued)Additional Services Provided to CustomersSupplying Customers with Short and Long Term Credit or Credit GuaranteesSupplyin

28、g Payment and Thrift InstrumentsUnderwriting Customer Note and Bond Issues in the Eurobond MarketProtecting Customers Against Interest Rate RiskHelping Customers Market Their Products Through Export Trading Companies (ETCs)Services Supplied By Banks in Services Supplied By Banks in International Mar

29、kets (continued)Ways of Supplying Customers with CreditNote Issuance Facilities (NIFs)Eurocommercial Paper (ECP)Depository Receipts (DRs)Services Supplied By Banks in Services Supplied By Banks in International Markets (continued)Payment InstrumentsPayment ServicesSight DraftsTime DraftsThrift Instr

30、umentsThrift servicesTap CDsTranche CDsFloating Rate CDsFloating Rate NotesServices Supplied By Banks in Challenges for International Banks in Foreign MarketGrowing customer use of securities markets to raise funds in a more volatile and risky worldDeveloping better methods for assessing risk in int

31、ernational lendingAdjusting to new market opportunities created by deregulation and new international agreementsChallenges for International BChallenges for International Banks in Foreign MarketSolutions to Troubled International LoansThey may be restructuredThey can be sold in the secondary marketT

32、hey can be written offEither a portion or in its entiretyChallenges for International BChallenges for International Banks in Foreign MarketInternational Loan Risk Evaluation SystemsThe Checklist ApproachThe Delphi MethodAdvanced Statistical MethodsPublished Country-Risk IndicatorsEuromoney MagazineInstitutional Investor IndexInternational Country Risk GuideChallenges for International BCh