FIN365 10/05/2023

what is international commercial banking

• provision of investment banking services, such as underwriting, corporate finance, and financial advisory, to clients that are involved in cross-border transactions

• banking services provided by commercial banks across national borders to facilitate international trade and investment.

• banking activities conducted by financial institutions located in offshore jurisdictions, which are typically countries or territories with favorable tax laws and regulations that attract foreign investors seeking to minimize their tax liabilities.

deposit facilities include

• demand deposit, current account, term deposits, saving accounts

• demand deposits and term deposits

• currents account, saving accounts, fixed accounts

demand deposits

• allowed owner account to receive fund on demand and write check on the account

• fund cannot be transferred to another party by written check, have maturity period

• have passbook had to be presented and the transactions recorded

which is not a types of banking institutions

• retail banking

• offshore financial centres

• business banking

• private banking

trade finance is

Letter of Credit (LOC)

• seller company can feel assured of being paid and less risky

• facilitate international trade & development

• participating in the international syndicate by lending to MNCs

Which is not the effect of international commercial bankings

• knowledge advantage

• prestige and image

• home nation information services

• educational advantages

which is not a negative effect of international transaction

• information asymmetry

• moral hazard

• non free rider problem in resolution cries

which is not corresponded banks in Malaysia that have relationships with US

• Hong Leong Bank

• CIMB Bank

• Bank of New York America

• EXIM Bank