Module Overview:

International banking is a key component of the global economy. This module is concerned with
understanding the structure, trends and strategies of international banks, together with the most
important markets in which they operate. The module covers the evolution, structure and
strategic drivers of international banking; international banking markets; the kinds and functions
of international banks (including international commercial, investment, retail and private banking);
offshore financial centres, products and services of international banks, risk management
(including asset and liability management); regulation and emerging trends.

Aims & Objectives

On completing this module students will:

Understand how and why international banking is a key component of the global
economy;

Explain the structure, trends and strategic drivers of international banks and the most
important markets in which they operate;

Understand the strategy options and strategy formulation in the key segments of
international banking, commercial, investment, retail and private banking;

Explain the nature, importance and strategic drivers of offshore financial centres;

Use finance and other relevant techniques to analyse the risks, risk management and
risk regulatory systems of international banks.

Unit 1 Introduction to International Banking

Unit 1 provides an introduction to international banking business and aims to cover briefly some
basic concepts, namely the role of banks, their main activities and the products and services that
banks offer. It briefly describes the history of international banking and the main theories
underlying the rationale for
international banking. There is a section which focuses on the international banking markets and
activities, with particular emphasis on the Euromarkets, offshore banking and the recent trend
towards conglomeration.
The final section offers an overview of the main risks faced by banking institutions and focuses in
detail on the typical risks of international banking and their management. At the end of the unit

students should be able to examine the characteristics of international banking and the markets
in which they operate and be familiar with the identification of risks and the main risk
management techniques.

Unit 2 International Banking Activities

Unit 2 provides an introduction to the different types of international banking activities. The core
products and services offered by international banks include retail and other commercial banking
business similar to the domestic retail operations (such as loans, overdrafts, lines of credit, etc.).
However, very often international banking services are provided to large firms (multinational
companies) and thus involve large volumes. Two important markets for international banks are
the syndicated loans market and the asset securitisation market. The final section of this Unit
highlights the impact of the recent 2007 2009 global financial crisis on international banking
activities and markets. On completion of the Unit, students should be familiar with the main
international banking activities. Furthermore, they should understand the causes, consequences
and policy lessons of the recent financial crisis and well as current developments in the
international banking system.