Foreign Banking in the United States

b. List three differences you found between the accounts and features this bank or credit union offers and the bank from question 1 above. (1-3 sentences. 1.0 points)

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

The Financial Sector: The formal budgetary division comprises of six saves money with temporary licenses, and nine authorized cash exchange firms. The division is little and promising while there is allegedly expansive casual part. The national bank of Somalia (CBS) confronts challenges in building monetary division supervision because of specialized and human asset imperatives. The economy has restricted money, especially in lower groups. Somali banknotes are not promptly accessible, making issues for the poorest nationals.

banking network and it is near to its customers. Despite the high branch number and

Before starting a new business, several decisions such as its legal structure must be made first. Five basic entity types exist in which to structure a business. These types consist of sole proprietorships, partnerships, limited liability companies (LLC), C corporations, and S corporations. When determining the type of structure to use, comparison of different factors such as liability to the owners, taxation, and management

When it comes to bank regulations their used to help us with all our needs when it comes to the many steps to handling a bank business and our economic power storage house. The U.S., banking is regulated at both the federal and state level. Depending on the type of charter a banking organization has and on its organizational structure, it may be subject to numerous federal and state banking regulations Apart from the bank regulatory agencies the U.S. maintains separate securities, commodities, and insurance regulatory agencies at the federal and state level. I will discuss Part 1002 - Reg B - Equal Credit Opportunity Act (ECOA) Compliance.

One cannot say that U.S banking system is designed to fail; however, it is the relentless deregulation in the financial sector and competing for financial sector activities in the globalized financial market as means towards higher growth resulted in its instability over the centuries. The U.S. central bank and federal government did not see the impending crisis on the horizon due to the deregulation of financial market. The central bank believed that there could be evolving economic imbalances or risk in the financial markets, but that these were best managed by market forces themselves. But they failed to realize that some time market fails on its own. Deregulation of the financial sector was initiated and reinforced through legislative changes, followed by regulatory policies consistent with the philosophy of deregulation. As the US was losing comparative advantage in agriculture, manufacturing, and services to developing and emerging market economies, while they continued to have advantage in the financial sector. Hence, the United States perhaps felt that national interest lies in their dominating financial sector activity, and hence development of the financial sector was coterminous with their national interest. This approach could have led to a race to the bottom in financial sector regulation in their jurisdiction. The US banking system and financial sector was source of so much instability was due to relentless deregulation of the financial market.

The Bank of United States has a profound history indeed. The bank was established in 1791 to act as a storae place for federal funds as well as the government’s monetary agent. This bank was initially proposed by Alexander Hamilton and was granted a twenty-year charter by Congress. This would not go over very well with the Jeffersonians due to the fact they believed the bank represented dominance of mercantile over agrarian interest and unconstitutional use of federal power. (footnote) The first Bank of United States however did open in Philadelphia in 1791 with branches in eight different cities. The bank conducted general commercial business as well as acting on behalf of the government. The bank appeared to be a triumph as it was managed well and was actually very lucrative.

The United States is a leader in international business transactions. As a result the law surrounding international business structures and business dealings has flourished in the United States. Companies around the world who have no ties to the United States use this country in forum selection clauses because they want the efficient structure of our legal system and alternative dispute resolution options. For being so advanced in most other areas of international business transaction law, one would think that the practice of law here in the United States would also be efficient and groundbreaking. Not only is the legal market in the United States behind the eight ball, but current legal ethics rules prevent law firms from utilizing some more flexible business structures. One of these is allowing law firms to be owned by non-lawyers, for example becoming a publically held company. By allowing law firms the option of being publically held, they have a better opportunity to reach greater potential. Like in most other fields the world is becoming smaller, and it is normal to do business internationally. Without changes in the ethics rules that affect the ownership and management of law firms in the United States, they will be left behind in a world where it is becoming increasingly important to be first and stay first in the international market of legal services.

Shinhan Bank America is a non-member bank with a headquarters in New York. A non-member bank is a state-chartered commercial bank, but not a member of the Federal Reserve System (“All Institution Types Defined”). It is spread out in five different states with 16 domestic branches, with total assets of $1,308,996,000. The Federal Deposit Insurance Corporation (FDIC) regulates Shinhan Bank America with the purpose of “preserving and promoting public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails” (“Who is the FDIC”).

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

Tamara Long sat in her office reflecting on the tough past 6 weeks. She was the head of the international department at the American International Bank (AIB). Six weeks ago, the Chairman of the bank had called Tamara into his office. A bulletin had just come over the bank 's wire indicating that a military coup had taken place in Portugal.

There are various levels of bank regulation in the United States directed at the government and state levels. Banks can decide to work under a state sanction or a national contract, keeping in mind the contrasts between the two are sometimes imperative, or even detectable, to ordinary clients, it has a noteworthy effect on the regulation of the bank.

3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank.