商业银行管理Bank ManagmentFinancial Services7th第20章课后题答案.docx

1、商业银行管理Bank ManagmentFinancial Services7th第20章课后题答案CHAPTER 20INTERNATIONAL BANKING AND THE FUTURE OF BANKING AND FINANCIAL SERVICESGoal of the Chapter: The purpose of this chapter is to learn what services international banks offer their customers and to discover the options a bank manager has under

2、law and regulation to organize a multinational bank. Key Topics in This Chapter Types of International Banking Organizations Regulation of International Banking Foreign Banking Activity in the United States Services Provided by International Banks Managing Currency Risk Exposure Challenges for Inter

3、national Banks in Foreign Markets The Future of Banking and Financial ServicesChapter OutlineI. IntroductionII. Types of Foreign Banking OrganizationsA. Representative OfficesB. Agency OfficesC. Branch OfficesD. SubsidiariesE. Joint VenturesF. Edge Act CorporationsG. Agreement CorporationsH. Interna

4、tional Banking Facilities (IBFs)I. Shell BranchesJ. Export Trading Companies (ETCs)III. Regulation of International BankingA. Goals of International Banking RegulationB. U.S. Banks Activities AbroadC. Expansion and Regulation of Foreign Bank Activity in the U.S.1. The International Banking Act of 19

5、782. Foreign Bank Supervision Enhancement Act of 1991D. New Capital Regulations for Major Banks World Wide1. International Lending and Supervision Act2. Basel AgreementIV. Services Supplied by Banks in International MarketsA. Making Foreign Currencies Available for Customer and Proprietary Transacti

6、onsB. Hedging Against Foreign Currency Risk Exposure1. Forward Contracts2. Currency Futures Contracts C. Other Tools for Reducing Currency Risks 1. The Development of Currency Options 2. Currency SwapsD. Supplying Customers with Short- and Long-Term Credit or Credit Guarantees1. Note Issuance Facili

7、ties2. Europaper3. Issuing and Managing Depository ReceiptsE. Supplying Payments and Thrift (Savings) Instruments to International Customers1. Payments Services2. Savings (Thrift) ServicesF. Underwriting Customer Note and Bond Issues in the Eurobond MarketG. Protecting Customers Against Interest Rat

8、e Risk 1. Interest Rate Swaps 2. Interest Rate Caps 3. Financial Futures and OptionsH. Helping Customers Market Their Products Through Export Trading CompaniesV. Challenges for International Banks in Foreign MarketsA. Growing Customer Use of Securities Markets to Raise FundsB. Developing Better Meth

9、ods for Assessing Risk in International Lending1. International Loan Risks2. Possible Solutions to Troubled International Loans3. International Loan Risk Evaluation SystemsC. Adjusting to New Market Opportunities Created by Deregulation and New International Agreements1. Opportunities Created by NAF

10、TA and CAFTA2. Opportunities in the Expanding European Community3. Opportunities in Asia as Barriers ErodeVI. The Future of Banking and Financial Services A. Convergence B. Consolidation C. Survival of Community Financial Service Institutions D. Reaching the Mass Media E. Invasion by Industrial and

11、Retailing Companies F. The Wal-Mart ChallengeVII. Summary of the ChapterConcept Checks20-1. What organizational forms do international banks use to reach their customers?These forms include representative offices, branch offices, subsidiaries, joint ventures, Edge Act subsidiaries, IBFs, shell branc

12、hes, and ETCs. Representative offices generally do not provide conventional banking services but serve as a channel to route customer service needs back to a banks home office, while branch offices generally offer a full range of banking services. Subsidiaries are separate corporations that are owne

13、d by a banking firm, while joint ventures are shared business operations usually jointly owned by a foreign bank or bank holding company and a domestic firm. Edge Act subsidiaries are operated inside the United States by both domestic and foreign banks and must, by regulation, devote the bulk of the

14、ir service activities to providing international banking services to offshore customers. IBFs are international banking facilities located in U.S. territory that reflects transactions carried out on behalf of international customers. Both foreign and domestic U.S. banks may operate these computerize

15、d sets of accounts known as IBFs. Shell branches are merely offshore booking offices to keep track of borrowings of international money-market funds and to avoid domestic regulations. Finally, ETCs are export trading companies that provide financing, insurance, market analysis, and other services ne

16、eded by businesses exporting or importing goods from abroad.20-2. Why are there so many different types of international organizations in the financial institutions sector?Different organizational forms are used for several reasons. These different organizational forms often serve different function

17、s and which one an institution chooses to use may depend on their goals and objectives. In addition, the laws in one country may restrict or prohibit the use of a particular type of organizational form. Finally, there may be tax advantages of one form over another and there may be differing abilitie

18、s to raise capital and other funds.20-3. What are the principal goals of international banking regulation? The principal goals of international banking regulation include: protecting the safety of depositor funds, promoting stable growth in money and credit, protecting a nation against loss of its f

19、oreign currency reserves, restricting the outflow of scarce capital, and protecting domestic financial institutions and financial markets from foreign competition.20-4. What were the key provisions of the U.S. International Banking Act of 1978 and the International Lending and Supervision Act of 198

20、3?The U.S. International Banking Act of 1978 brought foreign banks operating in the United States under federal regulation for the first time. It required foreign banking offices taking deposits from the public to post reserve requirements and allowed them to apply for deposit insurance. The Interna

21、tional Lending and Supervision Act of 1983 mandated minimum levels of capital for U.S. banks and sought to reduce bank risk exposure from international loans.20-5. Explain what the Basel Agreement is and why it is so important.The Basle Agreement is a negotiated agreement between bank regulatory aut

22、horities in the United States, Canada, Great Britain, Japan, and eight other nations in Western Europe to set common capital requirements for all banks under their jurisdiction. The importance of the Basle Agreement is twofold: (1) it strengthens international banks, thereby strengthening public con

23、fidence in them, and (2) it removes important inequalities in banking regulation between nations that contribute to competitive inequalities between banks.20-6. Describe the principal customer services supplied by international banks serving foreign markets.The principal customer services supplied b

24、y international banks are: (1) making foreign currencies available for customer transactions, (2) helping shelter their customers currency risk exposure through the use of forward contracts, currency futures contracts, currency options, and currency swaps, (3) supplying customers with short-and long

25、-term credit or credit guarantees, (4) supplying payments and thrift (savings) instruments to international customers, (5) underwriting customer note and bond issues in the Eurobond market, (6) protecting customers against interest rate risk, and (7) helping customers market their products through e

26、xport trading companies.20-7. What types of risk exposure do international banks strive to control in order to aid their customers?International banks strive to control currency risk exposure and interest rate risk exposure in order to aid their customers.20-8. What is a NIF? An ADR?A note issuance

27、facility (NIF) is a medium-term credit agreement between an international bank and its larger corporate and governmental credit customers, where the customer is authorized to periodically issue short-term notes, each of which usually comes due and is retired in 90 to 180 days, over a stipulated cont

28、ract period (such as five years), with the bank pledging to buy any notes the customer cannot sell to other investors. An American depository receipt (ADR) is a receipt issued by a U.S. bank that makes it easier for a foreign business borrower to sell its securities in the United States.20-9. Of wha

29、t benefit might NIFs and ADRs be to international banks and their customers?Both NIFs and ADRs provide fee income to international banks, and allow the banks to offer additional services to their customers. NIFs provide credit guarantees for customers borrowings in the open market. ADRs make it easi

30、er for a foreign business borrower to sell its securities to U.S. investors.20-10. What are ETCs? What services do they provide and what problems have they encountered inside the United States?An ETC is an export trading company launched by large banks. The purpose of these ETCs is to research forei

31、gn markets, identify firms in those foreign markets that could distribute products, and then provide or arrange the funding, insurance, and transportation needed to move goods to market.20-11. What do the terms Europaper and Eurobonds refer to? Why are these instruments important to international ba

32、nks and their customers?Europapers consist of short term IOUs and Eurobonds are long term debt securities placed in denomination that are not the currency of the country where they are issued. The main market for these securities is in London. These instruments allow companies that are not able to crack the US market to launch dollar denominated securities. In addition, Eurobonds are used by companies to finance their foreign investments.20-12. What types of tools