Part B: International banks tend to operate differently in different economies to maximise shareholders' value. Evaluate international bank's risk management procedures when considering foreign direct investment 1. Introduction 2. Shareholders' value and maximizing shareholders' value in international banks What is shareholder wealth?: The increased return to a shareholder in the form of dividends and/or capital appreciation- capital gain. Why do banks move abroad? Seek growth & profits v domestic markets (mature, competitive, overly regulated). Diversification, improve economies of scale & scope, improve brand awareness. Conditions - entry barriers have to be lowered, growing economy. International bank and maximizing shareholder value: Banks want to go abroad because of: (i) Diversifying their market segment and customer base; (ii) Reducing cost of capital; (iii) Restructuring their banks; (iv) ...... Increase their income and reduce costs maximize its shareholder value. Competitive advantage - superior management team, advantages in technology, access to financial markets, sizeable capital, superior products and services (wealth management - good P/E ratio) follow clients abroad Some related data/figures Cross border/International M&A in banking industry, foreign branch of banks.... Citing sources in Harvard style