商业银行管理全套配套课件英文PPT教师手册习题习题答案 Chap020.ppt 31页

ChapterTwentyInternationalBankingandtheFutureofBankingandFinancialServices KeyTopicsTypesofInternationalBankingOrganizationsRegulationofInternationalBankingForeignBankingActivityintheUnitedStatesU.S.BanksOperatingAbroadServicesProvidedbyInternationalBanksManagingCurrencyRiskExposureChallengesforInternationalBanksinForeignMarketsTheFutureofBankingandFinancialServices TypesofInternationalBankingOrganizationsRepresentativeOfficesLimited-servicefacility:marketshome-officeservices;doesnottakedepositsorbookloansAgencyOfficesDoesnottakedepositsfromthepublicbutextendscommitmentstomakeorpurchaseloansBranchOfficesThemostcommonorganizationalformformostinternationalbanks:alocalofficethatrepresentsasinglelargefinancial-servicecorporation TypesofInternationalBankingOrganizations(continued)SubsidiariesForeignsubsidiarypossessesitsowncharterandcapitalstock;maynotnecessarilyclosedownifitsprincipalownerfailsJointVenturesBankconcernedaboutriskexposureinenteringaforeignmarketalonemaychoosetoenterintoajointventurewithaforeignfinancialfirm,sharingbothprofitsandexpenses TypesofInternationalBankingOrganizations(continued)EdgeActCorporationsDomesticUScompaniesownedbytheUSorforeignbankbutlocatedoutsideofhehomestateofthebankthatownsthem;limitedtointernationaltransactionsAgreementCorporationsSubsidiariesofabankorganizedunderSection25oftheFederalReserveAct;devotethebulkoftheiractivitiestoservinginternationalcustomers TypesofInternationalBankingOrganizations(continued)InternationalBankingFacilities(IBF)ComputerizedaccountrecordsthatarenotpartofthedomesticUSaccountsofthebankthatoperatesthemShellBranchesOffshorelocationsestablishedinordertoescapetheburdenofregulation TypesofInternationalBankingOrganizations(continued)ExportTradingCompanies(ETCs)TheExportTradingCompanyAct(ETCA)allowedU.S.bankingfirmsandEdgeActcorporationstocreateETCs;thesespecializedfirmsmustreceiveoverhalftheirincomefromactivitiesassociatedwithexportinggoodsandservicesfromtheUnitedStates RegulationofInternationalBankingInternationalbankingactivitiesarecloselyregulatedbybothhomeandhostcountriesAstrongtrendtowardderegulationofbankingandtherelatedfieldsofsecuritiesbrokerageandunderwritingtookplacefromthe1960stothe1990sChangingregulatoryruleshavecontributedtoamorevolatileinternationaleconomy RegulationofInternationalBanking(continued)HarmonizationThecoordinationofvariousnationsintheirregulatoryactivitiessothatallfinancialfirmsservinginternationalmarketswilloperateundersimilarrules GoalsofInternationalBankingRegulationProtectingtheSafetyofDepositorFundsPromoteStableGrowthinMoneyandCreditForeignExchangeControlsRestricttheOutflowofScarceCapitalProtectDomesticFinancialInstitutionsandMarketsfromForeignCompetition RegulationofForeignBankActivityintheU.S.InternationalBankingActof1978BranchesandagencyofficesofforeignbanksmustsecurefederallicensesfortheUSoperationsForeignbranchingintheUSisregulated,withadesignatedhomestateLargerforeignbranchesandagencies(>$1billion)aresubjecttolegalreserverequirements RegulationofForeignBankActivityintheU.S.(continued)ForeignBankSupervisionActof1991TightercontrolofforeignbankoperationsintheUS.EmpoweredtheFedtoexaminetheUSofficesandaffiliatesInternationalLendingandSupervisionActof1983FederalregulatoryagenciesshouldpreparecapitalandlendingrulesforUS-supervisedbanksBaselAgreementCallsforallbankstoachieveaminimumtotal-capital-to-totalrisk-adjustedassetsratio ServicesSuppliedByBanksinInternationalMarketsThevarietyofservicesinternationalbanksandtheirstrongestcompetitorsofferhasexpandedinresponsetoevolvingcustomerneedsandintenseinternationalcompetition TABLE20–1KeyCustomerServicesOfferedbyInternationalBanks ServicesSuppliedByBanksinInternationalMarkets(continued)MakingForeignCurrency(FOREX)AvailabletoCustomersCustomersrequiresizablequantitiesofcurrenciestopayforimportedgoodsandrawmaterials,topurchaseforeignsecurities,andtocompletemergersandacquisitionsOthercustomersmayreceiveforeign-currencyorforeign-currency–denominateddepositsfrombusinessesandindividualsabroadwhopurchasetheirproductsorsecuritiesTheseforeignfundsmustbeexchangedfordomesticcurrencyanddeposits ServicesSuppliedByBanksinInternationalMarkets(continued)MakingForeignCurrency(FOREX)AvailabletoCustomersFOREXtradingactivityamongcommercialandinvestmentbankdealershassharplyincreasedduetovolatilityamongleadingcurrenciesTradingvolumeoftenexceedsatrilliondollarsadayandisclimbingProprietaryTradingWhendealersspeculateonthepricesofselectedcurrencies ServicesSuppliedByBanksinInternationalMarkets(continued)HedgingAgainstForeignCurrencyRiskExposureCurrencyriskisthepotentialforlossduetofluctuationsincurrencyexchangeratesCustomersarenottheonlyoneswhofacecurrencyrisk;internationalbanksthemselvesmustdealwithexchangerateriskexposure ServicesSuppliedByBanksinInternationalMarkets(continued)HedgingAgainstForeignCurrencyRiskExposureCurrencyrisksarisemostoftenininternationalbankingwhenMakingforeigncurrency–denominatedloanstocustomersIssuingforeign-currency–denominatedIOUs(suchasdeposits)toraisenewfundsPurchasingforeign-issuedsecuritiesTradinginforeigncurrenciesforabank’sowncurrencypositionaswellasfortheneedsofitscustomers ServicesSuppliedByBanksinInternationalMarkets(continued)HedgingAgainstForeignCurrencyRiskExposureThenetexposureofabankoritscustomerstofluctuationsincurrencyvaluescanbedeterminedfromthefollowingequationIfNetExposure>0,thebankislongoncurrencyiandifNetExposure<0,thebankisshortcurrencyi. ServicesSuppliedByBanksinInternationalMarkets(continued)HedgingAgainstForeignCurrencyRiskExposureInternationalbankstypicallyemployawidevarietyofcurrency-hedgingtechniquestohelpsheltertheirownandtheircustomers’riskexposureThemostwidelyusedofthesecurrency-riskmanagementtechniquesincludeForwardContractsAcustomerworksthroughabanktonegotiateacontractcallingforthedeliveryofaparticularcurrencyatastipulatedpriceonaspecificfuturedateCurrencyFuturesContractsContractspromisedeliveryofstipulatedcurrenciesataspecifiedpriceonorbeforeaterminaldate(longhedgesandshorthedges) ServicesSuppliedByBanksinInternationalMarkets(continued)HedgingAgainstForeignCurrencyRiskExposureCurrencyOptionsRightbutnotanobligationtodeliveroftakedeliveryofadesignatedFOREXfuturescontractsatasetpriceanytimebeforetheoptionexpiresCurrencySwapsContractbetweentwopartiestoexchangeonecurrencyforanotherandhelpreducetheriskoflossascurrencypriceschange EXHIBIT20–3AStraightCurrency ServicesSuppliedByBanksinInternationalMarkets(continued)AdditionalServicesProvidedtoCustomersSupplyingCustomerswithShortandLongTermCreditorCreditGuaranteesSupplyingPaymentandThriftInstrumentsUnderwritingCustomerNoteandBondIssuesintheEurobondMarketProtectingCustomersAgainstInterestRateRiskHelpingCustomersMarketTheirProductsThroughExportTradingCompanies(ETCs) ServicesSuppliedByBanksinInternationalMarkets(continued)WaysofSupplyingCustomerswithCreditNoteIssuanceFacilities(NIFs)EurocommercialPaper(ECP)DepositoryReceipts(DRs) ServicesSuppliedByBanksinInternationalMarkets(continued)PaymentInstrumentsPaymentServicesSightDraftsTimeDraftsThriftInstrumentsThriftservicesTapCDsTrancheCDsFloatingRateCDsFloatingRateNotes ChallengesforInternationalBanksinForeignMarketGrowingcustomeruseofsecuritiesmarketstoraisefundsinamorevolatileandriskyworldDevelopingbettermethodsforassessingriskininternationallendingAdjustingtonewmarketopportunitiescreatedbyderegulationandnewinternationalagreements ChallengesforInternationalBanksinForeignMarketSolutionstoTroubledInternationalLoansTheymayberestructuredTheycanbesoldinthesecondarymarketTheycanbewrittenoffEitheraportionorinitsentirety ChallengesforInternationalBanksinForeignMarketInternationalLoanRiskEvaluationSystemsTheChecklistApproachTheDelphiMethodAdvancedStatisticalMethodsPublishedCountry-RiskIndicatorsEuromoneyMagazineInstitutionalInvestorIndexInternationalCountryRiskGuide ChallengesforInternationalBanksinForeignMarketNewOpportunitiesOpportunitiescreatedbytheNorthAmericanFreeTradeAgreement(NAFTA)andtheCentralAmericanFreeTradeAgreement(CAFTA)OpportunitiesintheexpandingEuropeancommunityOpportunitiesinAsiaasbarrierserode TheFutureofBankingandFinancialServicesConvergenceConsolidationSurvivalofCommunityFinancial-ServiceInstitutionsReachingtheMassMediaInvasionbyIndustrialandRetailingCompaniesTheWal-MartChallengeFightingforUltimateSurvivalinaGlobalFinancialSystem QuickQuizWhatorganizationalformsdointernationalbanksusetoreachtheircustomers?Whataretheprincipalgoalsofinternationalbankingregulation?Describetheprincipalcustomerservicessuppliedbyinternationalbanksservingforeignmarkets.Whattypesofriskexposuredointernationalbanksstrivetocontrol?Whattypesoftoolshavethesebanksdevelopedtohelpprotectthemselvesandtheircustomersagainstvariousrisks?