Two Questions of international banks Essay Example | Topics and Well Written Essays - 500 words

Two Questions of international banks - Essay ExampleWhen it is term to pay back the load, the Venezuelan company may non be able to repay in dollars because of exchange controls imposed by the presidency of Venezuela. Thus, the borrower could non fulfill the demand of contract because of transfer luck (Smith 112). The government policies do not allow the transfer of currency of the opponent country. The local currency is not allowed to be converted into forex so that it may be sent out of the host country. Likewise, forex can not be acquired from the outside. The tangible assets of banks are susceptible to confiscation by the local agencies. The contract between the investor and the government bodies is likely to experience a breach. Other risks are of significantly minute nature that include alone are not limited to financial crisis in the host country, local peoples ostracise of the bank on the grounds of religion, and delays in currency exchange and transfer because of exter nal influences. Conclusion internationalist banks suffer a lot because of political risks. Political upsets are both a cause and encumbrance of distorted international banking system. Growth of international banking and role of supply and demand conditions Introduction Value of a particular stock upsurges as its demand increases.