The international banking market Essay Example | Topics and Well Written Essays - 3250 words

The global banking market - Essay ExampleInternational banking bodily function continued to expand , propelled by banks substantial purchases of securities and the give birth of Japanese banks to the international banking market. The cross-border claims of banks in the reporting eye socket increased by $110 one thousand thousand .select few, closely notably Mexico and Turkey. Another notable development in the original half of the course was a neat increase in deposit flows from developing countries to international banks, arising from an improvement in the external position of oil-exporting countries..Interbank activity slowed , as was to be expected following the extraordinary surge in lending to banks in the developed countries in the first quarter. To some extent, banks in the reporting cranial orbit unwound the large interbank positions that they had built up during the first quarter, with funds moving from banking centres in the euro area to London and then being pas sed onto Tokyo, Zurich, the Bahamas and the Cayman Islands. patronage flows from banks in the united Kingdom to their branches in the Caribbean, reporting banks claims vis--vis banks in offshore centres continued to decline in the second quarter. ... According to the consolidated banking statistics, Japanese and UK banks were responsible for most of the increase in reporting banks claims on US banksDeposits by developing countries soarThe ongoing contraction of bank credit to developing countries reflects in part weak demand for external support. Despite strong growth in many countries, this year developing countries are expected to post their largest current account surplus in two decades. The fortify external position of oil-exporting countries is responsible for most of the improvement. As well as limiting external financing needs, this improvement contributed to a large increase in developing countries deposits with foreign banks. Flows to US non-banks surpass those to euro a rea borrowersPurchases of securities also accounted for most of the $57 billion rise in claims on non-bank borrowers in the second quarter. to a greater extent(prenominal) recent data on syndicated credits show a surge in lending to telecom firms, suggesting that direct lending to non-banks in Europe may have also recovered. Banks in the reporting area continued to purchase substantial amounts of securities issued by non-bank borrowers in Europe. Nevertheless, international bank flows to non-banks in the euro area more than halved to $20 billion, Banks resident in the United Kingdom and the euro area, which had provided massive sums to non-bank borrowers in Banks cross-border claims on non-banks in the United States have increased since late 1999.Renewed lending by Japanese banks was funded in part through and through the international interbank market. Taking into account changes in both assets and liabilities, reporting banks moved upwards of $59 billion into banks in Japan in t he second quarter, the largest increase in years. Further