FIN 417 Study Guide - Final Guide: Securities Act Of 1933, Basel Ii, Currency Swap
10 May 2017
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International banks provide all services domestic banks do as well as: arrange trade financing, arrange foreign exchange, offer hedging services for foreign currency receivables and payables through forward and option contracts, offer investment banking services. Imf recognizes places like: bahamas, cayman islands, hong kong, netherlands antilles, Panama, and singapore as such places: shell branches, nothing more than a post office box. International banking facilities: separate set of accounts that are segregated on the parents books. Capital adequacy standards: set by the basel ii accord, banks must hold a certain amount of capital based upon risk for default. Euro-currency or euro-dollars: deposits of a currency at a bank other than its home currency dollars deposited in a bank that does not operate in dollars = eurodollars or euroyen is yen deposited in banks outside. Japan: most often interbank transactions, common reference rates include libor, pibor, sibor, euro-credits, short term loans in eurocurrency, often massive loans underwritten by multiple banks.
