Global Banking Essay

2083 words - 9 pages

Chapter 14
Global banking

Transnational Corporation (TNC) or Multinational Corporation (MNC)
- It is a corporation which maintains its headquarters in one country but performs production, marketing, finance, and personal functions within many other countries.
- The owners of such corporations are the highly industrialized countries of the world like United States, Great Britain, France, Germany, and Japan.

Transnational Banks
- International finance institutions which do their business in many countries of the world.
- These are special types of transnational corporations whose field of specialization is global banking or international finance.
- Their ...view middle of the document...

- United States banks also became transnational. Their global banking operations began after the Act of 1913 which authorized the establishment of overseas branches of national banks in order to bolster the foreign trade of the US.
- A late comer in global banking is Japan. Japanese banks started their international banking operations in the late 1950s.
- It is noted that transnational banks expanded only during the last twenty years.

The Biggest Banks in the World
Here are the 20s biggest banks as of March 1989:
1. Dai-Ichi Kangyo Bank Ltd., Tokyo 386,937 1
2. Sumitomo Bank Ltd., Osaka 376,088 2
3. Fuji Bank Ltd., Tokyo 364,044 3
4. Sanwa Bank Ltd., Osaka 348,358 5
5. Mitsubishi Bank Ltd., Tokyo 343,593 4
6. Industrial Bank of Japan, Tokyo 257,578 6
7. Norinchukin Bank, Tokyo 241,947 7
8. Tokai Bank Ltd., Nagoya 225,121 9
9. Mitsui Bank Ltd., Tokyo 219,666 11
10. Mitsubishi Trust & Banking Corp. 210,266 12
11. Credit Agricole Mutuel, Paris 207,938 8
12. Citicorp, New York 203,827 10
13. Sumitomo Trust & Banking, Osaka 196,516 14
14. Banque Nationale de Paris 194,316 13
15. Barclays Pic, London 198,198 19
16. Mitsui Trust & Banking Co., Tokyo 183,873 15
17. National Westminster Bank, London 178,343 21
18. Credit Lyonnais, Paris 176,663 17
19. Taiyo Kobe Bank Ltd., Tokyo 178,670 20
20. Bank of Tokyo Ltd. 173,373 24
Here are the 20s biggest banks as of December 7, 2012:
Rank Bank Country Total Assets, US$b *
1 Deutsche Bank Germany 2,809.89
2 Mitsubishi UFJ Financial Group Japan 2,803.42
3 Industrial & Commercial Bank of China China 2,763.59
4 HSBC Holdings UK 2,721.06
5 Barclays PLC UK 2,584.30
6 BNP Paribas France 2,562.99
7 Japan Post Bank Japan 2,513.21
8 JPMorgan Chase & Co. USA 2,321.28
9 Credit Agricole SA France 2,317.12
10 Royal Bank of Scotland Group UK 2,225.14
11 Bank of America USA 2,168.02
12 Mizuho Financial Group Japan 2,123.32
13 China Construction Bank Corporation China 2,115.35
14 Agricultural Bank of China China 2,078.03
15 Bank of China China 2,027.41
16 Citigroup Inc USA 1,931.35
17 Sumitomo Mitsui Financial Group Japan 1,788.23
18 Banco Santander Spain 1,672.11
19 Societe Generale France 1,647.51
20 ING Group Netherlands 1,604.57
Expansion of Global Banking

- One major factor in the rapid expansion of transnational banks is the growth of transnational corporation. These transnational banks support global manufacturing and trade of the transnational corporations. On the other hand, the latter provides good business to the transnational banks. Hence, there is a symbiotic relationship among international industry, trade, and finance.
- Another factor is the supply or growth of the Eurodollar market. Such particular type of currency market was organized in the 1950s...

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