This industry includes banks engaging in activities outside their primary country of business. These banks offer comprehensive banking and related financial services to customers around the world. Some of the principle products services they offer include currency exchange, letters of credit, and wire transfers, investments, loans, and retail services. Success in this industry is marked by banks which have identified their core global activities and have differentiated themselves from the competition.
Banking is one of the most highly regulated and protected industries in the world.
Each country has its own set of regulations that foreign banks must adhere to in order to operate in that country. This barrier to entry is being challenged in most countries, but at differing rates. The 1990's will continue to be one of the most telling periods for the future of international banking. Most banks are entering 1997 with lower profitability levels than in prior years. Profit margins are under siege due to intense industry competition.