Fourth, the credit institution may apply to the national central bank of the country - a member of the ESCB, for which he is resident for permission to fulfill reserve requirements through an intermediary. Conducting a comprehensive anti-inflation policy of the ESCB possible to ensure price stability in the transition to the single currency. From January to May 1999. in the states, "the euro zone," the growth rate of consumer prices was 1% year on year, while in the USA - 2.1%, in Canada - 1.5%, while the average for the group of industrialized countries - 1.2%. A significant increase in the role of securities transactions in the system, especially its active use as collateral, indicates that during the operations prioritizes reliability.
This creates a psychological climate of confidence in the monetary and financial markets, which objectively reduce inflationary expectations in the economy. The practice of participation of foreign capital in the development of national banking systems World experience of foreign capital in the development of national banking systems Until the mid-1980s, the scope of participation of foreign capital in the development of national banking systems were very limited. Despite the partial lifting of restrictions on the movement of capital and an increase in the volume of foreign trade, many countries, both developing and industrialized, continued to adhere to the principle of which has already become traditional protectionism.
The total number of restrictions on market access and national treatment in force in world trade in financial services in the mid-1990s - before the adoption of agreements on the liberalization of financial services under the General Agreement on Trade in Services (GATS), more than 11 thousand of them predominant part accounted for the banking services. Most countries have established a legislative restrictions on the activities of foreign banks in the territory.
Initially, the shift towards internationalization of financial intermediation affected states with a mature market economies. Then, over the past approximately 15 years, the financial markets of many developing countries and countries with economies in transition, to some extent begun to open to external participants.
First of all, this phenomenon is evident in the expansion of foreign banks, expressed in the increase of their share in the assets and capital of national banking systems. Most clearly this trend is observed in Eastern European countries in transition to a market economy, and in Latin America. To a lesser extent, this process affected countries in Asia and Africa.
In many ways, the process of liberalization of trade and financial services on an international scale has been associated with the formation of a new global trade and financial architecture. Regulatory agencies, opening up access to foreign capital to the national market of banking services, guided by several considerations.
First, the desire to create a favorable environment for foreign investment. Second, by standard arguments in favor of opening up the economy as a whole and its individual sectors, the increase in the level of competition and encourage efficiency of doing business. Third, the entry of foreign banks meant the importation of modern technology, which entails a general institutional strengthening of the financial sector. Fourth, foreign banks can be considered as one of the channels of investment flows to other industries, and their presence would thus one of the factors of economic growth.
The motivation of foreign banks coming into a new market, deserves special attention. The main role is played here by the opportunity to make a profit from operations in the local market. In their decision to open a business should also influence the level of integration between the economies of the countries of origin and the country - the object of investment.
Finally, the presence of foreign banks is largely dependent on the existing restrictions on market entry and conduct of operations. However, the main motive of the presence of foreign banks in the world still has the opportunity to make a profit in the new market. The strategy of foreign banks in this case focuses on the economic outlook, GDP growth, inflation, the capitalization of domestic companies.
In general, the prospects look better GDP growth, the greater the tendency of foreign banks present on the local market. An additional factor in this case is a competitive environment in the local market.
The interest of foreign banks will be higher than the less-developed and effective local banking system. Global experience has shown that a foreign market comes mainly large banks, and this is due to several reasons. First, the large international banks holding substantial market share in the country of origin, there is a motive of risk diversification through the expansion of its activities in different countries.
Second, one can not discount what multinationals are customers of large banks.