International banking involves financial transactions that cross national borders. It emerged as a distinct industry in the 1970s as most banks began expanding beyond their domestic markets. An international bank provides services like accounts and loans to foreign clients, including individuals and companies. It occupies an important role in the global economy by facilitating international banking activities through access to capital, technology, and networks. International banking offers advantages like lower costs, knowledge of foreign markets, prestige, regulatory benefits, and opportunities for growth and risk reduction through diversification. Services provided include trade financing, foreign exchange, investment banking, personal and business banking, and corporate services.

1. INTERNATIONAL BANKING 🏦

2. Introduction & Meaning
- International Banking 🏦
 Banking is an industry that handles cash, credit, and other
financial transactions.
 International banking can be referred as a subset of a
commercial banking transactions and activities having a
cross border and or cross currency elements.
 International banking is an arrangement of financial service
by residential Bank of one country to the residence of
another country.
 The industry was transformed in the year 1970s. Until then
most banks concentrated on their home markets.

3. Continued..
 An international Bank is a financial entity that offers financial
services, such as payment accounts and lending opportunities
to foreign clients. These foreign clients can be individuals and
companies.
 The rapid expansion of international networks and Globalisation
, the Banking sector occupies a remarkable position in the
Global Economy as it has access to the capital , the
technological capabilities and the international network to
facilitate financial banking activities.

4. Advantages / Importance / Reason’s
for International Banking 🏦
 Low Marginal Costs.
Managerial and marketing knowledge developed at
home country can be used in abroad with low Marginal
costs.
 Knowledge Advantage.
The foreign bank subsidiary can draw on the parent banks
knowledge of personal contacts and credit investigations
for use in that foreign market.
 Prestige.
Very large multinational bank’s have high perceived
prestige, which can be attractive to new client’s.

5.  Regulatory Advantage.
Multinational bank’s are often not subject to the same
regulations as domestic bank’s.
 Wholesale Defensive Strategy.
Bank’s follow their multinational customer’s abroad to
avoid losing their business at home and abroad.
 Retail Defensive Strategy.
Multinational bank’s also compete for retail services such
as travelers Checks and tourist and foreign business
market.
 Growth Opportunities.
 Risk Reduction
Greater stability of earnings due to diversification.

6. Benefits of International BANKING 🏦
 Accessibility
 Flexibility
 International Transactions
 Tax Efficiency
 Convenience
 Easy transfers (especially Forex)
 Effective Investment
 Lending and Credits.

7. Services Offered By Foreign/
International Bank’s 🏦
 Trade Financing.
It Signifies financing for trade/ Business .it Concerns both domestic
and International trade financing and transactions.
 Arrangement of Foreign Exchange.
International Bank’s arrange and deal in trading of one currency for
another.
 Offer hedging services for foreign Currency Receivables and
Payables through forward and option contracts.
 International Bank’s provide services to those engage in
International trade and Investment
(i.e Risk sharing, liquidity, information)

8.  Offer Investment Banking Services (ie)
1. Borrow or lend in euro- currency market.
2. Underwrite EuroBonds and Foreign Bonds.
3. Raising Capitals.
4. Advisory Services (example in case of Mergers and
Acquisitions)
 Like domestic bank’s , International Bank’s also accept and
lend.
 Personal Banking Service’s.
1. Bank Accounts.
2. Loans and Credit Cards.
3. NRI Services.
4. Investment and Financial Planning.

9.  Business Banking Services.
1. Global trade Solutions.
2. Cash Management.
3. Forex Service’s.
4. Current Accounts and overdraft Facilities.
 Corporate and Institutional Banking Services.
1. Corporate Banking.
2. Equities and Global Investment Banking.
3. Global Payments.
4. Trade and Factoring Services.
5. Asset Management etc.

10. By:
SYED SALMAN
( II M.Com )
Department of
Commerce
St Aloysius Degree
College And Center
For Post Graduate
Studies
Cox town , Bengaluru