Banking in Major Countries

The domestic banking scene in each country shapes the opportunities and prospects for favourable development of international banking operations. The following brief description of the banking systems of selected countries mirrors the fairly wide contrasts that can be observed in major countries. The British banking system reflects a long-standing international orientation. Nearly half of the deposits in U.K. banks are domiciled in specialised institutions that have evolved from London’s pivotal international financing role. In France, we have a system that stands apart in terms of the new competitive environment, public ownership of major banks, and recently strengthened monetary powers of the Bank of France. By contrast, banking in Germany is characterised by numerous banks, both in number and types. The three big banks in Germany conform closely to the mixed banking pattern, explaining their orientation toward underwriting and international finance. Switzerland offers another interesting special situation. Swiss banks receive substantial foreign funds for deposit and investment management.