International Banking
In order to understand International banking, students should first understand the overall history and development of banking. Although many of the examples of either a banking or country financial collapse may appear to the student to be outdated, the lessons learned (or not learned) are still relevant in today’s more globalized world of banking. For example, in applying the elements of the current sub-prime lending crisis, students will find that the three main causes for a banking crisis that is covered in this course are still viable:
1) Low capital-to-asset ratios (high leverage)
2) Low cash-to-assets ratios
3) High demand debt and short-term debt to total debt
Therefore, students should be aware that many banking concepts are not new ideas. Yet, at the same time, the text and class discussions should be integrated with up-to-date research (such as Internet use) that provides current information to increase student understanding of International Banking. In addition, although globalization has been a significant part on International banking growth in the last two decades, students should also be aware of possible retrenchment of in terms of increased isolation that may be taking affect due to the political environment, or more importantly due to economic ramifications tied to globalization itself. For example, how has the U.S. sub-prime crisis affected the banking and investment opportunities of other countries? How has/will increased world fuel costs affect world trade and eventually, global banking? How will the “greening” effect and global warming affect international trade and finance? These types of challenges may change international banking….Students would be advised to continue to monitor and research these types of questions in order to have an increased understanding of international banking. Good Luck!
In addition to the assigned text, the following is a brief history of international banking
Banking
1) Low capital-to-asset ratios (high leverage)
2) Low cash-to-assets ratios
3) High demand debt and short-term debt to total debt
Therefore, students should be aware that many banking concepts are not new ideas. Yet, at the same time, the text and class discussions should be integrated with up-to-date research (such as Internet use) that provides current information to increase student understanding of International Banking. In addition, although globalization has been a significant part on International banking growth in the last two decades, students should also be aware of possible retrenchment of in terms of increased isolation that may be taking affect due to the political environment, or more importantly due to economic ramifications tied to globalization itself. For example, how has the U.S. sub-prime crisis affected the banking and investment opportunities of other countries? How has/will increased world fuel costs affect world trade and eventually, global banking? How will the “greening” effect and global warming affect international trade and finance? These types of challenges may change international banking….Students would be advised to continue to monitor and research these types of questions in order to have an increased understanding of international banking. Good Luck!
In addition to the assigned text, the following is a brief history of international banking
Banking
References: Bank of International Settlements (2008). About us. Retrieved August 16, 2008, from http://www.bis.org/ International Monetary Fund (2008) Organization for Economic Cooperation and Development (2008). About the OECD. Retrieved August 22, 2008, from http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html World Bank (2008). The World Bank. Retrieved August 16, 2006, from http://www.worldbank.org/ Topic 1.4 Investment Banking