International Relation Between International Banking And Global Banking

The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.

Wells Fargo is an international company based in United States and Canada. Wells Fargo has several divisions and services, ranging from basic deposit accounts to complex commercial loans.

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

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.

International /global is when a business is in more that 2 countries for example like Nike.

According to the three different departments, Westpac group has divided customers into three types, including Australian Financial Services (AFS), Westpac Institutional Bank and Westpac New Zealand. This report focuses on the products and services of Westpac retail and business banking which belongs to a part of AFS. In addition, AFS also include St. George Banking Group and BT Financial Group (Westpac, n.d.).

Knowing that the RBA has a far-reaching hand into the financial sector by being able to manipulate the economy is truly insightful. A key point is the cash rate in Australia is followed closely by mid to long term interest rates, which tie into mid to long term loans such as personal loans and mortgage loans. Credit cards are not so closely related in today’s world because they are unsecured debt.

These banks should ideally be divested of any sort of commercial interest, and must act in the best interest of its nation’s economic stability. A lot of meaning is carried out in being identified as ‘independent’ authority, where the bank possess powers to take its own decisions, approve its own legislature, follow its own policies and offer stability to the nation’s economy.

Deregulation, innovation and globalisation has changed the way banks run from asset management to liability management, as well as the change from ‘mono’ to ‘multi-tasking’ and the increased competition in the sector as well as risk. The banking system has evolved drastically from the traditional mono-tasking institution to what it is now. This change in roles of asset and liability management could be one of the main reasons behind the global

When exploring the idea of doing business with different countries around the world, globalization comes to mind. Globalization is how people come together and exchange information when doing business based on products, services and technology. ("The Challenges of Globalization". Boundless Management Boundless, 2016). Localization is actions taken to modify or alter a product or service to a specific population, community or culture. ("The Challenges of Globalization". Boundless Management Boundless, 2016). These terms are significant in expansion ventures and may come with challenges and risk however, the hope is to provide the opportunity for the growth of a business profits. ("The Challenges of Globalization". Boundless Management Boundless, 2016).

Commonwealth Bank of Australia is one of the most popular multinational banks in Australia and New Zealand. It has its businesses in Asia, Fiji, New Zealand, the United Kingdom and the United States (Commbank.com.au, 2017). The main financial services of this bank include funds management, retail

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

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

Private banks, regardless of where they operate all over the world, also facing similar demands arise from the

Offshore banking is the action of having a bank account outside of the country of residence. Typically it offers many advantages like greater privacy, low or no taxation, easy access to deposits and protection against local, political, or financial instability, but has also been popular for its use of illegal practices like money laundering and tax evasion. Those against offshore banking view its illegal reputation and predict that it will only cause further damage like providing fund for terrorism or holding underground economies. However other experts believe that offshore banking is a safe haven for depositors and has had a substantial impact on the international economy in today’s world.