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International Banking Department
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
(We recommend this as work of authority.)
banking department of a bank is primarily responsible for financing foreign
customers or domestic clients involved in foreign dealings.
The operations typically handled by a bank's international department
of documentary credits of importation, as well as providing notices
and confirmation of export documentary credits.
to correspondents of documents for collection and handling of collections
received from them.
bond guaranties on foreign countries or issuing bonds or guaranties
for the account of foreign banks or firms in favor of local firms.
foreign currency assets of the bank.
lines of credit to banks or firms abroad and securing and handling
lines of credit granted to the bank by its correspondents.
public relations to assure permanent contact, directly or indirectly,
with customers within the country or abroad.
close supervision of relations with correspondent banks worldwide,
which, aside from credit and service aspects, also means permanent
control over reciprocity received or given.
statistical data to evaluate the evolution of bank operations in the
most frequently found in foreign departments of banks include documentary
credit service, collection service, bond guaranty service, and foreign
exchange service. The international
banking department can subdivide its service structure in a variety of
ways. Some banks provide
a service designated as "goods" or "merchandise" regardless
of whether they are covered by documentary credits or are handled as collections.
Others divide services into "import service" and "export
service," each which handles documentary credits and collections
related to goods entering or leaving the country.
Others have created a "documentary credit service" that
handles all transactions covered by this instrument and a "collection
service" that handles all transactions relating to import or export
documents either sent or received for collection.
exchange service is responsible for receiving and processing transactions
with which it is entrusted by customers, foreign banks, or the foreign
exchange desk. The principal
function of this service is to determine the buy and sell exchange rates
of different currencies under which the bank operates.
The foreign exchange desk is also responsible for monitoring the
bank's foreign exchange position.
Typical duties of the chief deal or foreign exchange desk include:
and supervise the bank's purchases and sales of foreign currencies.
all agencies and branches with daily buying and selling rates of different
currencies with which the bank normally deals.
current quotes for those same currencies for all operations about
which the dealer or desk has been consulted.
rates previously transmitted as well as suspend any authorization
given to branches and agencies to operate freely up to certain limited
contact with principal bank customers about foreign exchange matters.
with customer service officers and with managers of branches and agencies
in promotion activities.
the foreign exchange position.
- Keep current
regarding the foreign exchange market.
monthly statistics about operations activities and profits earned.
the foreign currency cash assets that the bank holds in its correspondent
out transfers or coverage transactions so that accounts abroad have
the least number of overdrafts, thereby avoiding unnecessary interest
Source: Seglin, Jeffrey
L., Bank Administration Manual: A
Comprehensive Reference Guide, BAI.
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