International Banking in Global Perspective (Routledge International Studies in Money and Banking)

Banks play the most vital role in the economy by acting as financial intermediaries and providing the necessary credit to fund consumption and investment, thereby effecting real economic activity. Banks have been in existence for centuries and while the core of their function remains the same, their business model has changed dramatically over the years. Most notably, banking internationalisation has gained prominence in the last three decades.This book offers a comprehensive understanding of the business model, challenges and benefits of international banks.It features banks that are global and highlights their overseas activities. It documents the recent trends in international banking activity and serves as a one-stop-shop for students and scholars. Furthermore, in the post-financial crisis of 2007-09 there has been a surge in the FinTech industry where banks have sought an opportunity to expand and compete, the core of which is the provision of services via the newly established online technology as well as the green finance initiative. The book brings together the issues and opportunities ahead as global banks respond to market and environment conditions in these arenas.The text will be a useful resource for students, researchers and scholars of banking, international finance and international economics as well as students wishing to pursue a professional career in banking. Given the vital role banks play in the economy, their structure and activities are of great interest to policy makers also. Cover Half Title Series Title Copyright Contents Preface List of contributors List of figures List of tables Introduction 1 The transmission mechanism of stress in the international banking system 1.1 Introduction 1.2 A technical exposition of the CIP 1.3 Explaining CIP deviations and cross-currency basis fluctuations 1.4 Data and methodology 1.5 Empirical results 1.5.1 Summary statistics 1.5.2 Static connectedness measures 1.5.3 Dynamic connectedness measures 1.6 Conclusions 2 Japanese banks’ international activities 2.1 Introduction 2.2 Data 2.3 Japan’s international banking activity in global perspective 2.4 The significance of Japan’s international banking activity domestically 2.5 The role of monetary policy in Japan’s international banking activity 2.6 Conclusions 3 A primer on U.S. global banking 3.1 Introduction 3.2 Banks in the U.S. 3.2.1 Bank types and models in a Nutshell 3.3 Banks’ business models in a nutshell 3.4 U.S. banks: some important facts 3.5 Global banks: why they matter 3.5.1 Global banks as part of globalization 3.6 Global Banks business model and size: some interesting notions 3.7 Policy, liquidity, and risk 3.7.1 Economic policy uncertainty 3.7.2 Liquidity in global banks 3.8 Why risk in global banks is so hard to assess? 3.9 Conclusion 4 Chinese international banks 4.1 Introduction: Chinese international banking in a broad context 4.2 Outbound M&A of large commercial banks: auxiliary for Chinese enterprises go abroad 4.3 Cross-border lending: the stage of policy banks 4.4 Lending under the diplomatic framework 4.5 Development finance with commercial terms 4.6 Bringing domestic lending patterns abroad 4.7 Conclusions 5 European international banks 5.1 Introduction 5.2 The 2008 crisis paves the way for the contestability of the European banking market 5.2.1 A historically uncontestable banking market 5.2.2 The contestability factors of the banking market after the 2008 crisis 5.3 The transformation of European banks 5.3.1 Changing their business model 5.3.2 The transformation linked to the 2008 crisis 5.4 Crises and increased regulation 5.5 Consolidation and diversification of the European banking market 5.5.1 A changing movement 5.5.2 Consolidations after the 2008 crisis: towards a strengthening of stability? 5.6 The impact of the crises on European banks 5.6.1 Varying impacts from one crisis to another 5.7 An econometric analysis 5.7.1 Data 5.7.2 Econometric analysis: step by step 5.8 Conclusion 6 International banking in emerging countries: Latin America in the 21st century 6.1 Introduction 6.2 Banks and financial institutions 6.3 The reorganisation of the financial sector and the Latin American insertion into the international system in the 21st century 6.4 The behaviour of multinational banks in Latin America 6.5 Final remarks 7 Geography and business models of global banks 7.1 Introduction 7.2 Literature review 7.2.1 Banking and finance literature on business models of banks 7.2.2 Expansion of the model to account for internal liquidity 7.3 Data and methodology 7.4 Findings and discussions 7.5 Conclusions 8 The role of FinTech in driving sustainability and inclusive practices in banking 8.1 Introduction 8.2 FinTech before and after 2007 8.3 Rethinking money and institutions 8.4 Green banking and finance 8.5 FinTech and environmental & social governance 8.6 Conclusion Index