BANKING BEYOND BORDERS

Banking beyond Borders

Abstract

I enjoy traveling and learning about new and different cultures. Recently, I traveled to Ireland and was challenged with the banking system abroad. I have always been interested in how our cultural differences make business decisions different than that of my own decisions. In this paper compares how cultural differences change how financial institutions make business decisions and how international banking is affected by the many differences among the different cultures and countries in which banking is conducted. With that hunger for knowledge I reviewed the history of banking as well as evaluated the desire to commerce with other countries and banking institutions. I have disclosed the advantages and disadvantages of banking outside of your domestic borders. I have reviewed the beginning of the monetary policies of the U.S. and of EU. Along with the knowledge of our banking history, I will discuss how the cultural differences affect how we conduct banking business domestically and internationally.

Table of Contents

INTRODUCTION3

Beginning of banking4

U.S.A Banking5

Federal Reserve6

Currency Value7

EU Banking7

Currency Value8

LITERATURE REVIEW9

New Competitive Era in Banking: The 1960s9

A Revolution in Banking: The 1970s to Today9

The Costs and Benefits of Bank Mergers11

Employees and Community Groups12

Transformation of Urban Spaces by U.S. Banks13

Ethnically Owned Banks' Role in Community Development16

Possible solutions to the deposit insurance problems and difficulties in resolving problems in foreign-owned banks16

Summary21

Discussion22

Limitations23

Future research24

REFERENCES25

INTRODUCTION

Cultural attitudes in two, sometimes are adopted similar, Greater EU regions were compared and analyzed in the context of a commonly accepted, unlike region (United States) for the banking industry in the years 1985 and 2000. (Beugelsdijk 2006) The potentially dynamic nature of the national culture to a more static approach, which is often used in management research assumes examined with a contrast Hofstede framework. The proof of the relative convergence test, in particular within the terms of collectivism and uncertainty avoidance, along with selected individual region static positions for cultural dimensions of support for the crossvergence theory. Pragmatically, the research suggests that organizational policies and practices for maximum effectiveness, in terms of adjusted crossverging realities and the culture are not static. Academic research warns of use of approaches that rely on the rankings for cultural indicators as a basis for the current investigation has been in relative cultural positions between regions and nations are not static. (Wong 2009)

Beginning of banking

However, the Bank remains the central objective, which was always putting the municipality of excess resources (deposits and investments) by borrowing the funds for working citizens and businesses. If it is an industry with the stigma of the old and cumbersome, it should be, but the global trend of deregulation has created new business opportunities in the banking industry on the banks. Deregulation, coupled with technological developments such as online banking and ATMs, shed in compliance with the banking industry an opportunity to its lackluster image. ((Helleiner 2008; Semoon 2010)

The banks have started to want to use asset-based wealth creation in developing areas of the United States, such as low income and minority urban areas to ...