Wednesday, February 26, 2020
International Banks Functions and Regulations Essay
International Banks Functions and Regulations - Essay Example This research will begin with the overview of international banks. A proper definition of International Banks mainly depicts a facility, which permits various funding organizations belonging to diverse regions of the nations throughout the globe to perform credit and debit operations. It also facilitates these funding organizations to participate in offering various loan provision services to various foreign inhabitants and establishments. Depending on the services, the international banks usually avails various sorts of exemptions in terms of reserve requirements and imposed tax rates that set by the respective governments. It is worth mentioning that direct as well as indirect support from the above-discussed funding organizations such as Ã¢â¬ËInternational Banking FacilityÃ¢â¬â¢ (IBF) eventually leads towards bringing about greater efficiency and effectiveness in the operational procedures of multiple international banks. After acquiring a brief idea about the international ba nks, it can be apparently observed that these banks offer a wide variety of services to both domestic and international clients. A few of these services have been described in the following. One of the services, which offer by international banks, is the Ã¢â¬Ëletter of creditÃ¢â¬â¢ service. This service is basically provided in the cases of products or services that purchase by individuals or organizations from the international banks. In relation to this particular service, the banks issue a document, which acts as an assurance of payment to the seller of the goods or the services, even if the buying individuals or organizations fail to comply with the payment process. It would be vital to mention that the banks issuing the Ã¢â¬Ëletter of creditÃ¢â¬â¢ document will certainly make the buyers liable for making payments to the sellers.