Essays on Global Banking Strategies Case Study

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The paper 'Global Banking Strategies" is a perfect example of a finance and accounting case study. After the financial crisis, there was a trend that saw many banks use re-localization strategies. Many of the major banks disposed of their international assets with the aim of satisfying higher capital investments, respond to regulatory complexities that were becoming more complex or to offer more of their management attention to restoring their profitability capabilities on their main domestic franchises (Holland & Westwood, 2001). The international strategy is, however, back and most banks, which are strong players in the industry, seek to take advantage of their relative position to have global expansion.

Low growth banks, on the other hand, seek to lay the foundation for making future profits (Holland & Westwood, 2001). Compared to the last witnessed international banking expansion a decade ago, there is a changing landscape where the main players in the banking industry have to operate. There exist two macro trends which pull from opposite directions. First, the markets that were thought to be emerging, such as Latin America, Asia and the Middle East, have now matured.

These markets have become great sources of profits and are experiencing medium-term growth rates that seek to surpass those expected in North America and Europe (Wright, A. (2002). On the other hand, the important aspects of marketing are now facing a strict regulatory environment that is advocating for higher operating costs, increased localization and barriers that prohibit the entry into some of the most attractive markets (Wright, A. (2002). The special nature of banking services leads to obstacles to international trade in banking services because all nations have regulations of banking operations.

Similarly, different nations have different cultures, and lack of local sensitivity to culture leads to failure (Cetorelli & Goldberg, 2012). Objectives The main objectives of the study will be To explore the main strategies that some of the international banks such as JP Morgan Chase and HSBC Holdings use to become global. To explore the extent to which cultural differences will affect the retail banking by focusing on Islamic culture. To explore the impact liquidity regulations will have on international banking. H1: There exists a linkage between cultural differences and international retailer banking. H2: There is exists a linkage between regulations on liquidity and international banking. Research questions To what extent will culture differences, including the Islamic culture, affect international retailer banking? To what extent will regulations on liquidity affect international banking? Analysis of global banking strategies that some banks have used and impacts of cultural differences and liquidity regulations According to Kwok and Tadesse (2006), despite the ease in which the banking operations have managed to cross national boundaries in the previous years, there have been obstacles in the efforts the banks have made to serve customers in foreign markets.

According to (Laird, 2014), there have been conferences such as the one held by SWIFT every year that focuses on beating the obstacles to serving customers in foreign markets. Laird (2014) adds that the conferences allow tons of presentations and information from various major banks from all over the world, such as JP Morgan Chase and IBM and major technology companies such as Oracles.


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