'Foreign Banks Pros and Cons Essay\r'

' right away with the blessings of tremendous development in the parley technology, relationship and interdependence among the countries meet been ontogenesis rapidly which signifies world-wideization as an ongoing process. Globalization helps the international chore- that is engaging in cross border expansion of sales, getting resources and diversifying endangerment. Factor that benefiting the strange banks in Bangladesh: Bangladesh is a developing dry land with a ample population.\r\nFrom the beginning of Bangladesh as an independent field it has been a desiring place for doing business for business organizations operational globally. This circumstance is existed in banking and opposite financial service sectors. There be some factors that benefitting the overseas banks operate in Bangladesh.\r\n1. Extended sales in an staggeringly populated country with a depressed disceptation: Bangladesh is a country with a large population, so this place is a big market for the banks in a mavin boundary with a wide-eyed set of legislations.\r\nSo the overseas banks operating in Bangladesh ass serve a large group of customers with a single marketing policy. As now a day the business transactions atomic number 18 taken place through banks and put forward hold savings ar unplowed in banks so the remote banks do not make water to be pertain about the demand. The local anaesthetic banks can not give a big competition as well.\r\n2. Minimizing risk: As habitual the multinational banks like other multinational corporations minimize risk by operating in Bangladesh.\r\nThat means if the banking sector collapses in a country the multinational banks impart not loose e rattlingthing and it is a risk diversifying method. 3. Acquiring resources: The unusual banks operating in Bangladesh can acquire Bangladeshi capitals, training and tender-hearted resources easily. The local expertise is deplore to work in MLCs. So the alien banks can acquire the local clement resources easily at a very cheap rate compare to the global condition. Having the benefits in Bangladesh 10 local banks save established their operation in our country and working comfortably for years after(prenominal) years.\r\nInfluences of foreign banks in Bangladesh: Benefits: 1. A flub in banking sector: Local banks are expected to react as the foreign banks enter to the country. The local banks here have changed their police in a validating way caused by healthy competition. 2. carry ne management and advertising techniques: foreign banks typically bring newer and more modernised management and advertising techniques in our banking sectors. The local banks can learn the modern techniques to uttermoste up with the changing sparing purlieu and globalization.\r\n3. Introducing new modernized technology: In Bangladesh most of the modern financial technology such as ATM, different types of cards, attain balance sheet accounting and the current computing technology brought by foreign banks and spread out in full banking sectors. 4. Helping in international flip-flop: Aiding in the development of trade and foreign direct investment are presented by foreign banks. Such as open an L/C in a multinational bank may be more helpful for the merchants. Problems:\r\n1). Foreign mastery: the established foreign banks have far greater brand value and economic capability than the local banks. So they can easily dominate by attracting customers. They also are being magnets for local human resources, so the local banks do not get the local expertises which also prolong the local banks behind the multinational banks.\r\n2). leave out of local commitment: the foreign banks overlook commitment towards the country for some reasons not meeting some social responsibilities.\r\n3.) slash check outming behavior: though on that point is not much data easy to prove this fact many passel think that the foreign banks cream skim the market- picking s disproportionate share of trump local business away from national banks.\r\n4). Unhealthy completion: introduction of foreign banks has added pressure to the local banks by change magnitude competition which results in risk taking of local banks. So the foreign banks of Bangladesh have a great influence in our economy in the form of pros and cons which are effectively altering our banking sector, with their operation.\r\n'