QUESTION

a)International Banking refers to banking transactions denominated in various foreign currencies, that cross national boundaries and includes international lending and deposits. Banks that have succeeded in their domestic markets and established a relatively high market share will be faced with the decision of whether to continue investing in growing their domestic market share or to expand into other countries with similar environment where they can replicate their tried and tested banking models. Discuss in detail three ways of facilitating transactions across National Boundaries. ( 12marks )

b)Discuss in details four risks exposed to banks engaged in Banking Transactions across National Boundaries. ( 8 marks )

(Total 20 marks)