MOHAMMED ABDUL ALEEM FINANCIAL MARKETS AND INSTITUTIONS EDWARD HEALY Distinguishing between international and world(a) depositing The principal variation between international banking and global banking is the way in which a bank finances its foreign assets, i.e. its claims on borrowers domiciled egressside the mart in which the bank is headquartered. An international bank uses funds raised(a) in its domestic market to finance its claims on borrowers in a foreign market. By contrast, a global bank uses funds raised in a foreign market to finance its claims on borrowers in the same foreign market. countersink differently, an international bank concentrates on cross-border business and a global bank on serving local markets locally. The europiuman exception wherefore is europium an exception? One explanation is that atomic number 63 is root word to several important financial centres. London is the outsizest, but Amsterdam, Dublin, capital of Luxembourg and Zurich also host many financial services firms. The activities of these firms pitch to boost cross-border intermediation.

Yet, dismantle if the cross-border activity in these financial centres is discounted, Europe still stands out. A second possible explanation for the large amount of cross-border business is the integration of the interbank m superstary market in Europe. Such integration had advanced quite far even before the euro and the introduction of the TARGET payments mechanism to serve the euro plain as a whole. But again, even if one strips out interbank transactions, cross-border claims remain much more dominant in Europe than elsewhere. The third factor is the combination of keen competition for Europes larger corporate borrowers and increasing holdings of securities in one country of obligors in another country, in the context of bound presence of European banks in their neighbours retail deposit markets. The mergers that sport occurred in... If you want to get a full essay, order it on our website:
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