The Future of International Banking

Earlier discussion has reflected the changing character of U.S. international banking over the postwar years. This dynamic feature is the result of interaction between changing environmental factors, and bank reaction to an environment in flux. International bankers have had to adjust to new competitive forces both in domestic and international banking, and have had to alter their mode of operations to cope with the realities of growing international opportunities, as well as co-ordinate their activities with new economic policies introduced by host countries. Moreover, the international economic and monetary structure has been subject to constant stress with the alternations in balance of payments deficits and surpluses, the introduction of new exchange rate relationships, the widening of currency areas, and the upsurge of new financial centres around the world. Banks have introduced new organisational forms to more effectively deal with these changing conditions, including multi-bank owned Edge units, venture banking affiliates, joint venture merchant banks, and parent bank organisational structures which are more adaptable to shifting international pressures.