INTERNATIONAL BUSINESS

ECONOMICS:
“INTERNATIONAL BANKING”

P R E S E N T E D B Y- S H R I N AT H B H A N D

ROLL NO- 03

MBA 3RD SEM

 CONTENTS

MEANING

FEATURES AND BENEFITS

REASONS FOR INTERNATIONAL BANKING

 MEANING.
International banking is just like any other banking
service, but it takes place across different nations or
internationally.
To put it another way, it is an arrangement of
financial services by a residential bank of one
country to the residents of another country.
 FEATURES AND BENEFITS
Flexibility
International banking facility provides flexibility to multinational
companies to deal in multiple currencies.
The major currencies that multinational companies or individuals
can deal with include the euro, dollar, pounds, sterling, and rupee.
The companies having headquarters in other countries can manage
their bank accounts and avail of financial services in other
countries through international banking without any hassle.
Accessibility
International banking provides accessibility and ease of doing
business to companies from different countries.
An individual or MNC can use their money anywhere around
the world. This gives them the freedom to transact and use
their money to meet any requirement of funds in any part of
the world.
International Bank Transfers/ Transaction
International banking allows the business to make international
bill payments.
The currency conversion facility allows the companies to pay
and receive money easily.
Also, benefits like overdraft facilities, loans, deposits, etc. are
available every time for overseas transactions.
Accounts Maintenance
A multinational company can maintain the records of global
accounts in a fair manner with the help of international
banking. All the transactions of the company are recorded
in the books of banks across the globe. By compiling the
data and figures, the accounts of the company can be
maintained. 
 REASONS FOR INTERNATIONAL BANKING 
Low Marginal Costs- Managerial and marketing knowledge developed at home can be used abroad with
low marginal costs. 

Knowledge Advantage- The foreign bank subsidiary can draw on the parent bank’s knowledge of
personal contacts and credit investigations for use in that foreign market.

Home Nation Information Services -Local firms in a foreign market may be able to obtain more complete
information on trade and financial markets in the multinational bank’s home nation than is
obtainable from foreign domestic banks. 

Growth- Foreign markets may offer opportunities to growth not found domestically
Prestige- Very large multinational banks have high perceived prestige, which can
be attractive to new clients. 
Regulatory Advantage- Multinational banks are often not subject to the same
regulations as domestic banks.
Wholesale Defensive Strategy- Banks follow their multinational customers
abroad to avoid losing their business at home and abroad. 
Retail Defensive Strategy- Multinational banks also compete for retail services
such as travelers checks, tourist and foreign business market.
Transactions Costs- Multinational banks may be able to circumvent government
currency controls.
Risk Reduction- Greater stability of earnings due to diversification 
THANK YOU