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International Banking Businesses

International Banking Businesses Covers A Range Of International Banking Services

International banking business covers a broad scope of transactions which are facilitated by international banks. Due to a sophisticated bank networking system which is built through the establishment of branches and subsidiaries around the world, international banks are capable of effecting transactions within a efficiently and within a short space of time through private, persona, commercial and corporate banking services.

An IBC or offshore shelf company is capable of playing a big role in lowering tax liability and the accumulation of assets. Other remedies to financial security include second citizenship such as the Dominica second citizenship which grants the option of citizenship by real estate investment option and an economic citizenship program. International banking business can be made better if you have a second passport as this gives more increased access to lower tax regimes. Find out about offshore shelf companies when asking about tax planning strategies for enhanced tax saving benefits.

This enhances the capacity of businesses to effectively conduct trade, whether they are engaged as exporters, importers, buyers or sellers of goods and services. Although a large part of the international banking business is dependent on advanced electronic facilities for carrying out operations and catering to customers, an important and distinguishing feature of international banking is the issuance of import and export letters of credit. Letters of credit are an advanced and guaranteed form of payment to buyers and sellers and by issuing these documents international banks assist in guaranteeing confidence and reassurance among traders and secure trading payment systems. Letters of credit can be issued electronically, which quickens trade and by using this service, through international banking, businesses can access new markets because of the safety that they provide when trading in markets that are considered inappropriate for open account trading.

International banking business also includes the provision of a variety of business solutions, such as foreign exchange, Forex or FX services that help reduce the risk of large scale dealing in foreign exchange. Established international banks offer services such as spot, forward and time option contracts which are directed at increasing the security of international trade. Spot services allow businesses to plan ahead by setting a fixed interest rate of currency exchange which is established by contract and expected to be obtained within a given space of time, which may be relatively short depending on an international bank’s level of efficiency. Similarly, forward contracts help promote long term strategic planning for transacting internationally and are a legal bond between the company and international bank involved. On the other hand, accrual FX services make it possible for companies to accumulate a particular foreign legal tender over a period of time at an attractive rate and in comparison to the rates on the forward market.

In facilitating trade and commerce international banking businesses put a number of financing options within the reach of businessmen and ready made companies. Some of these include overdrafts and a variety of loans with variable and fixed rates, as well as currency and money market loan schemes.

 


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