International Economy

International Economy
Name
Institution
International Economy
Banks continue to play an important role in the world financial markets. One of the ways in which banks have brought a revolution into the world financial markets has been through cross-border lending. As a way of looking for new markets, banks operating in mature markets have started offering credit facilities to corporate and sovereign borrowers across borders something that has led to growth in industries within economies that could have continued to stagnate due to the lack of funding (Lessard, 2012). Apart from this, banks play a critical role in the regulation of markets during financial crises. In most cases, economic crises are characterized by the inability of people being unable to repay their loans thus making it hard for the banks to give out further credit. However, financial banks prevent this from happening by offering loans to customers in the countries where they have operations thus ensuring that there is flow of money (Porzecanski, 2001).
There are numerous prob...