Many major multinational banks provide a variety of working capital and multinational cash management service. Using the Websites of a variety of these cross border banks ( starting these listed below),
BANK of AMERICA- http://www.bankof america.com/index.cfm?page=corp
BANK of MONTREAL-( Select cash management under corporation)
Search out the banks that offer multinational cash management services that combine banking with foreign exchange management.
Presume that you have subsidiaries in south America and Asia that import materials and parts and assemble for export. You need local lending sources for operating cash. You need short term investment vehicles
for excess cash balances. You need foreign exchange and forward market services. You have bills to pay in both local and other currencies.
Search for an international bank and describe how the services it offers will take care of your international
working capital management requirements. State where and how, if at all, this bank falls short of your requirements.
The objective of the problem is to make you take a look at multinational and multi location banks which can meet the needs of your company especially with regards to the finances at subsidiaries abroad, facilitate foreign exchange needs and to invest short term funds profitably. You are to select one bank and examine the facilities it provides and determine its suitability to your company's objectives. The bank that I have selected is BMO Nesbitt Burns. You may select any other bank you want.
<br>There are several assumptions that the problem makes; first it assumes that one bank will provide optimal service in different countries under different conditions. This may not always be true. To operate best under local conditions often a local bank may provide much better cash management services and foreign exchange facilities. Second, the problem assumes that the subsidiaries also need to use the same bank as that of the parent company. True there are many multinational banks that can be, used but different subsidiaries may use different banks, those that provide the best ...