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Explain the nature of international banking according to the Bank for International Settlements' Committee on the Global Financial System.
Explain the nature of international banking according to the Bank for International Settlements' Committee on the Global Financial System.
International banking is when a bank headquartered in one country extends credit to residents of another country, facilitating the transfer of funds across borders.
What is the main role of financial intermediaries and financial markets?
What is the main role of financial intermediaries and financial markets?
The main role is to provide a mechanism for transferring and allocating funds to their most productive opportunities.
Describe the intermediation function of banks.
Describe the intermediation function of banks.
Banks collect surplus funds from savers and allocate them to those with a deficit of funds, acting as intermediaries between borrowers and savers.
What are the primary requirements for lenders and borrowers in the context of international banking?
What are the primary requirements for lenders and borrowers in the context of international banking?
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How do lenders aim to reduce overall lending costs?
How do lenders aim to reduce overall lending costs?
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