Transnational banks and capital flows

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the most noticeable differences in the modern economy: transnational banks have seriously strengthened their positions. Their role in the consolidation of various capitals has increased. Transnational banks are giant financial institutions with a wide network of foreign branches. They operate with huge capitals, constantly expanding their power in the economy.

The movement of the latter from one country to another can lead either to an increase in the welfare of a state, or to the opposite effect. Big capital is focused only on its own benefit. If its interests are the same as those of any states, transnational banks can provide them with significant competitive advantages.

The main differences between their activities are the international nature and the high level of security of the operations performed, the universalization of work.

Transnational banks have the main goal of mobilizing finance in those places where it is easy and profitable, and using them where it promises maximum profit. Their capital they cantransfer from one place to another.

Developed countries support their multinational banks in order to attract tax funds from a number of financial transactions. This helps to expand not only its economic, but also political influence. Support by developed countries for their transnational banks may eventually lead to the establishment of control over the finances of less powerful countries.

Such large organizations are constantly fighting for the influx of new money. Therefore, transnational banks do not disdain even small depositors. However, they prefer to deal with serious borrowers. It is profitable to work with large enterprises and international corporations, in addition, there is no risk in this. Transnational banks issue to industrial firms in total up to forty percent of the total number of foreign loans. They are provided for any period in almost all existing types of currencies.

First of all, objects of the most promising sectors of the economy are being lent. The main clients of multinational organizations are companies involved in the import or export of products, correspondent banks, large firms that need funds for investments, as well as various government institutions.

Among the top twenty international institutions are some European, American, Japanese, Chinese banks. The following organizations are included in this rating: Barclays multinational bank, MizuhoFinancial, Deutsche Bank, Societe Generale, Banco Santander, Sumitomo Mitsui. They are all trusted by customers.

In Moscow, there is such an institution as the Transnational Bank. This financial institution is small in terms of net assets. It is mainly engaged in servicing representatives of small or medium-sized businesses. The quality of service in it at the moment is not the highest, as evidenced by the reviews. The transnational bank, among other things, performs currency transactions and attracts funds from citizens.