Article on Indian Banking Sector: “Gobalization of International Banking”
Over the last several years’ internationally active banks have shifted from international banking to global banking. Some banks, rather than taking deposits in one jurisdiction and lending in other, have pursued the strategy of taking deposits and offering consumer loans, mortgages and corporate loans within a variety of national markets through a local presence. Other banks have pursued a capital market strategy, seeking to fund their portfolios of local securities locally as well. Whether adopting a globe consumer earlobe wholesale model, banks are increasingly looking to serve customers through a local presence funded locally. The ambition to build a ‘global’ (or multinational) bank so defined defers from that to build and international’ bank, define as a bank that takes deposits in one country and makes loans in another. Even after shifting to global banking, Country risk remains same. Although the most compressive time series evidence for the long term shift Continue reading