Impact of Foreign Banks on Banking in Emerging Economies Essay

increase applied science and cornerstoneInternational affirming in appear market prep ar whatsoever advantages from the technology and variety. The advanced technology and innovation agreement could even surpass the formal technology and innovation. For example, they could improve productivity, increase in market and increase the competition and so on . Innovations in customer image and superior customer service delivery, vane integration. (Infosys 2000). For example, the internet and calculating machine transcription fork up a expedient discourse system to connect the consumer and bank. In daily life, customer often use the mobile phone, computer transfer the money. At the same time, innovation and technology is a lower price of the banking system in the rising market. The increase technology and innovation in emerging market may help the banking system make a clear communication for their employee, shareholder and consumer. As a result, banks in emerging markets a re leapfrogging their rich-world rivals in efficiency, technology and innovation (special report international banking 2011).increase liquidity and solvencyComparing with the local anesthetic banking system, the orthogonal banks on banking in emerging market have varied kind of comparative advantage. The reason is emerging market leave behind unknown bank entry to local market. This is lead to the higher liquidity and solvency. strange direct investment is a useful fund source for local market. At the same time, the foreign banks also have important roles which represent a borrower. For example, foreign banks have an enough capital arse and asset. Foreign banks have played a major role in pay emerging market (EMEs) in new-fangled year. Increased liquidity and solvency has helped emerging markets to aim their economies and allocate capital and financial know-how efficiently across countries (Agustn Villar )Disadvantage hard global policies and challenges international ba nking There are some negative factors occur in global banks in emerging economies. angiotensin-converting enzyme of the important factors is complex global policies. For example, the foreign banks are an extension of parent bank which sent to managers to overseas. Different banking system has antithetic policies. Meanwhile, the government also comes up with stricter policies. As a result, foreign banks should face a lot of complicated policies in emerging market. The collapse of Barings was a demonstration of how different countries supervisors are failing to communicate with each(prenominal) other.( the economist 1997). This opinion shows that the international banking in emerging market should have a closer supervisor.