TUTORIAL CHAPTER 2

1. There are two types of international banking offices which include correspondent office and
representative office. First and foremost is correspondent bank. It is a relationship that is
maintained when two banks keep a correspondent bank account with one another. Through
his local bank or its contacts, MNC clients of a bank are able to transact business
internationally due to the correspondent banking system. Besides, it also provides income
for large banks in which smaller foreign banks that want to do business will enter into a
correspondent relationship with large bank of its country with a fee.

In addition, representative office. It is a small service facility staffed by parent bank

personnel that is designed to assist MNC client of the parent bank in ealings with the bank
correspondents. Representative offices also aid local business customs and credit
evaluation of the MNC’s local customers’ data. It is useful when the bank has many MNC
clients in a country.

2. There are three types of banking distribution strategies. These include branchless banking,
retail banking and private banking.

Branchless banking refers to delivering financial services without relying on bank branches.
It can be used as a separate channel strategies that entirely forgoes bank branches. For
example, Automated Teller Machine (ATMs) and mobile phones.

Furthermore, retail banking type of banking distribution strategies which also known as
personal banking services. It is when a bank perform transactions directly with end-
customers. Saving account, mortgages, personal loans, credit and debit cards are among
the services offered by retail banking

Finally, private banking. It is provided by banks to private individuals that enjoys high income
level or invest a decent amount of assets. It is largely consisted of banking services,
discretionary asset management, brokerage, limited tax advisory services and some basic
concierge-type services.