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Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e
Peter Rose, Texas A & M University

International Banking

Standard & Poor's Questions

Chapter 26 in Money and Capital Markets: International Banking

Question 1


What key international services do the banking firms on the S&P Market Insight list provide? Do they provide all the international banking services discussed in Chapter 26 of Money and Capital Markets, Eighth edition?

Question 2


One of the most common assumptions in international banking is that United States’ banks are generally less risky than foreign banks, even for banks of comparable size and serving similar market areas. One reason often cited are the alleged more lenient foreign banking regulations prevailing abroad compared to supposedly tougher domestic U.S. banking rules and the greater stability of the U.S. economy relative to most overseas economies. Is there any evidence from banking firms contained in the S&P Market Insight list that this may be true? For example, do you see real risk differences between Bank of America (BAC) and Deutsche Bank (DB), two banking firms roughly comparable in size and credit quality ratings but with markedly different geographic bases?

Question 3


Do foreign and domestic U.S. banks tend to differ along any other dimensions than risk alone? To investigate this question please compare the performance characteristics of the four largest foreign banks in the Market Insight list—Barclays PLC (BCS), Deutsche Bank (DB), Dresdner Bank (DXBC30), and HSBC Holdings PLC (HBC)—versus four of the largest U.S. banks also contained within the Market Insight list—Bank of America (BAC), J.P. Morgan Chase (JPM), Wells Fargo Corporation (WFC), and Bank One (ONE). What differences did you find?
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