GLOBAL FINANCE AND ELECTRONIC BANKING

PAUL BENEDICK M. MORA, MBA

COURSE REQUIREMENTS:
Attendance 
Oral presentation of assigned topic
Participation in class deliberation
Project Submission
Periodic written examination

GRADING SYSTEM:
Class Participation:
 
Unit test, quizzes, book reports, oral tests, assignments, term
paper, project and general conduct in class…………………………..……3/5…..60%

 Required Periodic Examinations:

Prelims, Midterms and Final Examinations…………………2/5…..40%

TOTAL …………………….…………… 100%

INTRODUCTION TO THE COURSE

CONTENTS OF THE SUBJECT
REQUIREMENTS AND ACTIVITIES
GRADING SYSTEM
POLICIES ON ABSENCES, TARDINESS AND EXAMINATION

DEVELOPMENT OF GLOBAL FINANCING

Back then, trading are being done through barter system
Next is through precious stones, then notes, then after that, it is now called
money.
But that doesn’t stop there, in our generation today we have now what you called e-
banking or electronic banking
You can buy the things you want through online and with the use of internet.

WHAT IS GLOBAL FINANCING

The global financial system is the worldwide framework of legal agreements,
institutions, and both formal and informal economic actors that together facilitate
international flows of financial capital for purposes of investment and trade
financing.

ELEMENTS OF INTERNATIONAL FINANCE

Foreign Exchange Market
Currency Convertibility
International Monetary System
International Financial Markets
Balance of Payments
https://www.mbaknol.com/international-finance/components-of-international-
financial-environment/
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FOREIGN EXCHANGE MARKET#

Foreign exchange market is the market in which money denominated in one currency is
bought and sold with money denominated in another currency.
It is an over the counter market, because there is no single physical or electronic
market place or an organized exchange with a central trade clearing mechanism where
traders meet and exchange currencies.
It spans the globe, with prices moving and currencies trading somewhere every hour
of every business day.

CURRENCY CONVERTIBILITY#
Currency convertibility is the ease with which a country's currency can be
converted into gold or another currency. Currency convertibility is extremely
important for international commerce. When a currency is inconvertible, it poses a
risk and barrier to trade with foreigners who have no need for the domestic
currency.

INTERNATIONAL MONETARY SYSTEM#

Any country needs to have its own monetary system and an authority to maintain
order in the system, and facilitate trade and investment
The International Monetary Fund (IMF) and the World Bank have been maintaining
order in the international monetary system and general economic development
respectively.

INTERNATIONAL FINANCIAL MARKETS

International financial markets comprises of international banks, Eurocurrency
market, Eurobond market, and international stock market. International banks play a
crucial role in financing international business by acting as both commercial banks
and investment banks.

BALANCE OF PAYMENTS
International trade and other international transactions result in a flow of funds
between countries. All transactions relating to the flow of goods, services and
funds across national boundaries are recorded in the balance of payments of the
countries concerned.

THE GROWING IMPORTANCE OF INTERNATIONAL FINANCE

International finance plays a critical role in international trade and inter-
economy exchange of goods and services.
International finance is an important tool to find the exchange rates, compare
inflation rates, get an idea about investing in international debt securities,
ascertain the economic status of other countries and judge the foreign markets.
Exchange rates are very important in international finance, as they let us
determine the relative values of currencies. International finance helps in
calculating these rates.
Various economic factors help in making international investment decisions.
Economic factors of economies help in determining whether or not investors’ money
is safe with foreign debt securities.
Utilizing IFRS is an important factor for many stages of international finance.
Financial statements made by the countries that have adopted IFRS are similar. It
helps many countries to follow similar reporting systems.

International Financial Reporting Standards = IFRS

Society for Worldwide Interbank Financial Telecommunication - SWIFT
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