Business never stops in the global economy. Companies need banking services 24 hours a day on different continents. A large business company, for example, ABC Ltd., may need access to banking services in several continents and countries. It could establish banking relationships with local banks from each country where it does business. Nevertheless, ABC Ltd. may not be familiar with each country and the quality of the various banks.
Additionally, it would be difficult for the company to keep track of many different banks and accounts. Instead, they would want to use an international bank that engages in banking transactions in several countries. As a result, ABC Ltd. may hire the services of a large bank that operates internationally in all countries where it conducts business.
International Banking Services
International banks can provide ABC Ltd. with the same banking services it can get at any hometown bank. The company can deposit money in checking and money market accounts. It can also obtain loans and lines of credit for its business. The international bank can also provide specialized services that the company’s import-export business may need. For example, a global bank can provide trade financings, such as lending, letters of credit, and export credit.