What do you mean by International Banking? How it is different from Domestic Banking? Discuss in detail.

International banking refers to the banking operations that occur across borders, involving the transfer of money, services, and financial products between countries. It encompasses the range of services provided by banks that operate in multiple countries, including trade finance, currency exchange, international money transfers, and global investment services. International banking institutions offer specialized financial services tailored to the needs of global markets, facilitating cross-border business transactions and the international movement of capital.

The scope of international banking includes the activities of both multinational banks and domestic banks that have expanded their operations internationally. These banks may have foreign branches or subsidiaries, and they engage in services such as foreign exchange, international lending, financing of international trade, and investment management on a global scale. Some of the prominent activities in international banking include issuing foreign loans, facilitating international trade payments, currency swaps, and the creation of global financial products.

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