Global Financing: Minimizing Risk

Paper Summary:

This paper analyzes the subject of global financing and the exchange rate. It focuses on the roles that international financial institutes such as World Bank, IMF and ADB for example, have with regard to global financing operations and risk management. The paper specifically looks at how multinational banks can minimize the risks associated with global financing.

Table of Contents:
Introduction
Global Financing
Risk Management
Conclusions and Commentary

From the Paper:

"Blount (1998) suggests that reductions in risks associated with global financing will stem from cooperative efforts between banks and political leaders. Such efforts should involve "defining uniform codes for security and financing issues" and "braiding exchange trading and bank settlement processes" in a manner that creates "multi-currency accounting" and financing systems (Blount, 1998: 38). While on paper this concept seems simple, it is often difficult to commingle varying political and economic interests between companies to create stable bank financing and exchange trading policies to which every country will agree to. At most global financial institutions can hedge risks by looking for and working with countries that demonstrate stability and an active interest in cooperating with other countries to create more fluid "global capital markets" (Blount, 1998: 38)."

Sample of Sources Used:

• Bertuch-Samuels, A. & Ramlogan, P. (2007, Mar). The Euro: Ever more global. Finance and Development, a Quarterly Magazine of the IMF. 44(1): 1. Accessed 11, May, 2007: http://www.imf.org/external/pubs/ft/fandd/2007/03/bertuch.htm
• Blount, E. (1998). Taming global market risks. ABA Banking Journal, 90(3): 38.
• Homaifar, G.A. (2003). Managing global financial and foreign exchange rate risk. New York: John Wiley & Sons.
• Lim. E.G. (2006), The Euro's challenge to the dollar: Different views from economists and evidence from COFER and other data, IMF Working Paper, No. 06(153). Washington: IMF.

More papers on Global Financing: Minimizing Risk:

• Analytical Essay # 134975 : "Global Financing Strategies"
• Term Paper # 144077 : "Global Financing and Exchange Rate Mechanisms"
• Dissertation or Thesis # 107805 : "Modeling Interest Rate Risk Management"

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