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CHAPTER 1: INTRODUCTION TO INTERNATIONAL BANKING (FACTORS OF INTERNATIONAL…

- - - - mostly holding deposits and making loans
    - - Believed that the profits could be made in 2 conditions
        
        forced trade
        
        natural resource exploitation
      - Ruling nation assumed to be superior - they supposes to help the people of colony toward civilization
      - White colonizers held that there was an obligation to "rule subordinate, inferior & less advanced peoples"
      - The Europeans viewed tat whatever their belongings as superior and worthwhile to be transplanted
  - - - To take advantage of cheaper financing outside the local market & to gain competitive advantage
      - The birth of Eurocurrency market
      - Emergence of the US as a key economic power & growth of their FDIs through MNCs took place
      - Eurocurrency market - wholesale foreign currency deposits & lending
      - starting in 1960s and lasting 3 decades - mainly related to international banking transactions among developed countries.
      - Took place upon the establishment of subsidiaries outside the US mainly in London
    - - IB formed though
        
        consolidation within national frontiers.
        
        cross-border M&A
        
        ongoing shift to universal banking
      - Universal banking
        
        the ability to offer the full range of financial services which acts as one-stop center for all related institutions
        
        e.g: deposit-taking, loan-making. underwriting, consulting, leasing, hire-purchasing.
      - By end of 1990s, international banking was denominated by large banking & financial institutions specifically from the US, Japan, UK, Germany and Canada
      - Biggest chalengges
        
        to implement new systems
        
        to be entrepreneurs friendly
    - - They sold the underwritten securities in London - European investors
      - Expansion of banks in overseas during the 20th century was slightly limited
      - spurred by the underwriting securities activities performed on the 2nd half of the 19th century by J.P. Morgan, Lehman Brothers & Goldman Sachs.
      - economic uncertainty due to the world wars and changing in political views in many countries has restricted the rivalries coming from foreign countries in order to establish their own banking systems
      - started in 1830s
- - - - DEFINE :fire:
        
        process of international connection arising from the interchange of world view, product and ideas
      - MAJOR FACTOR IN GLOBALIZATION :fire:
        
        1) telecommunication :phone:
        2) transportation :ship:
        3) facilities and infrastructure :silhouettes:
        4) rise usage internet/WIFI
    - - DEFINE :unlock:
        
        Liberalization gone in hand with a steady increase in an economic integration at the global level
        
        This process have shown that the efficiency of bank in these countries has generally increased.
      - EXAMPLES :unlock:
        
        Liberalization in India showed an increase in banking efficiency
    - - DEFINATION :explode:
        
        given opportunities for the international transfer of best practice in banking & for a more efficient use of resources
      - TYPES OF INTEGRATION :explode:
        
        Social integration :check:
        
        Racial integration :red_flag:
        
        Economic integration :globe_with_meridians:
        -Educational integration :male-student::skin-tone-2:
        
        Horizontal integration