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CHAPTER 1 INTRODUCTION TO INTERNATIONAL BANKING (1.0 Introduction to…

- - - - :red_flag: Before 16th century mostly holding deposits and making loans
        :red_flag: The evolution of banking and financial institutions started in 16th century
        :red_flag: European bank expansion overseas more similar to the type of activity conducted nowadays
        :red_flag: Various Japanese and Canadian banks also developed their global banking activities in late 19th and early 20th century's.
        :red_flag:As a trademark of colonial banks. British banks specifically set up to do business only.
    - - 2nd Wave
        
        :lock: Starting in 1960s and lasting 3 decades. Mainly related to international banking transaction among developed countries.
        :lock:Happens when the US banks began to expand out of the country to meet the financial requirements of Multinational Corporations (MNCs).
        :lock: To take advantage of cheaper financing outside the local market and to gain competitive.
        :took place upon the establishment of subsidiaries outside the US mainly in London.
        
        3rd Wave
        
        :unlock: By the end of 1990s, IB was denominated by large banking and financial institutions specifically from the US, Japan, Germany, UK, France, Italy and Canada.
        :unlock: Universal banking, the ability to offer the full range of financial services one-stop centre for all related institutions.
        :unlock: Biggest challenge to invest in R&D. To implement new systems and to be entrepreneurs friendly.
        
        1st Wave
        
        :lock: Started in 1830s
        :lock: They sold the underwritten securities activities in London to European investors
        :lock: Expansion bank in overseas during the first half of the 20th century was slightly limited.
- - - - Over a long term
      - Practice in smaller banks
      - More conservatives
    - - Risky
      - Practice in larger banks
      - More flexible