FIN365 Intro to International Banking Part 1

Which of the following is / are the chapter learning objective (s)?

• Preface of international banking

• Transformation of international banking

• Reasons that stimulate the development of international banking

• All are the chapter learning objectives

Which of following can explain the concept of International Banking

• A bank in one country, which undertakes activities that involve it in some form of financial and banking businesses. (e.g loans/financing, advisory services, issuance of securities/bonds/sukuks) in home country

• The transactions with foreigners and domestic residents relating to: Depositing & lending/financing in domestic & local currencies

• The transactions with foreigners and domestic residents relating to: Facilitating international trade finance for clients

• The transactions with foreigners and host residents relating to: Offering investment banking services such as borrow or lend money in Eurocurrency markets & underwrite Eurobonds and foreign bonds.

Who is/are the possible party(s) involved in International Banking?

• •Institutional Clients such as Perodua Sdn Bhd

• •Individual clients such as Air Asia Berhad

• •Corporate - Coca-Cola Sales Berhad

• None of them

What is/are the difference(s) between local and foreign banks

• Regionally coverage

• Types of deposits they accept

• The medium of exchange accepted

• All are correct

What are the essentials of International Banking?

• Integration, Liberalization & Globalization

• Institutional, Corporate & Individual clients

• Information services, Prestige & Banking regulation

• None of them

Allows interchange of values,

Aligns with rapid development &

Generates interdependence

• LIBERALIZATION

• INTEGRATION

• CONNECTIVITY

• GLOBALIZATION

Connectivity - integrated financial systems,

Improves risk-sharing opportunities,

Specializes in the most productive sectors - increases economic efficiency.

• LIBERALIZATION

• INTEGRATION

• CONNECTIVITY

• GLOBALIZATION

No bias – equality,

Free competition,

Increases efficiency in the Long Run

• LIBERALIZATION

• INTEGRATION

• CONNECTIVITY

• GLOBALIZATION

What kind of integrations could happen through the operation of International Banking?

• National Integration

• Knowledge Integration

• Regional integration

• All are correct

A headquarter bank in a home country can offer financing to residents of host country through:

• Cross-border lending

• Local lending by affiliates established in the host country

• Lending booked by an affiliate established in a third country

• All are correct