Question

How are international banks different from domestic banks?

Answer 1

1. geographical area : domestic banks functions within the geographical boundry of the country and all the transactions takes place within the country only

international banks however make transactions across borders and has branches in other countries as well

2. smaller scale: since the infrastructural spread of domestic banks are restricted, they are smaller in scale of operations as compared to international banks as international banks are vast in scale across countries borders.

3. financial standards: since international banks operates operates and deals with foreign standards and policies their standards are higher than domestic banks

4. currency: since international banks involves multi currency transactions because of globalization however domestic banks deals with domestic currency only.

5. economic and socio cultural factors: international banks  face challenges to various socio cultural and economic factors respective of the various countries they operate with however domestic banks are relaxed with this factor as everything is domestic and familiar with.

6. benefit to MNC: international banks are of great advantage to Multinational companies as they also operate across borders and need assistance like forex with such banks. domestic banks aids domestic companies only.