The Changing Role of International Banking Dissertation

The Changing Role of International Banking - Dissertation Example These developments, unlike before when they were only restricted to the availability of trade credit with impromptu financing sovereigns, now extends well beyond this to define the changing role of the international banks in development finance. The international banking industry, through its penetrating operations and services in the developing countries, has now extended its services offered to the developing countries with the realization of efficient operating infrastructure, local agencies and smaller branches which have now grown to form part of the local banking industries of the developing countries. The international banking industry now performs series of financial transactions with the local banks in the developing world. They provide, to many industries and companies, a reliable gateway through which organizations, sovereigns, banks and other financial institutions perform foreign exchange and related derivatives, transfer funds, borrow money and invest their profits. The new role played by the international banks to the developing countries have created financial instability in the developing countries with their over reliance on the international banks. This calls for a redefinition of the policies guarding the relationships between the international banking industry and the local banks of the developing countries. Even though the coordination of policy of late has majorly focuses on the liquidity provision collaboration, financial scholars, participants of the market and policy makers have the need to focus on the long-term reevaluation and assessment that concerns the stringency that the financial regulation faces and the effects... The international banking industry, through its penetrating operations and services in the developing countries, has now extended its services offered to the developing countries with the realization of efficient operating infrastructure, local agencies and smaller branches which have now grown to form part of the local banking industries of the developing countries. The international banking industry now performs series of financial transactions with the local banks in the developing world. They provide, to many industries and companies, a reliable gateway through which organizations, sovereigns, banks and other financial institutions perform foreign exchange and related derivatives, transfer funds, borrow money and invest their profits.The new role played by the international banks to the developing countries have created financial instability in the developing countries with their over reliance on the international banks. This calls for a redefinition of the policies guarding the relationships between the international banking industry and the local banks of the developing countries. Even though the coordination of policy of late has majorly focuses on the liquidity provision collaboration, financial scholars, participants of the market and policy makers have the need to focus on the long-term reevaluation and assessment that concerns the stringency that the financial regulation faces and the effects of asset markets to the stability and independence of the financial industry.