Problem
Discrimination against transnational banks
Other Names:
Protection of national banking from international bankingRestrictions of home countries on transnational banking activities
Prejudicial treatment of multinational lending institutions
Nature:
Banking regulations and other banking policies in certain countries reflect the industry protection approach. The objective of these policies is twofold: to minimize the access of transnational banks to local savings; and to promote national financial institutions. Access to local savings by transnational banks is curbed by imposing restrictions on the number, location and services of their branch offices. A variety of supplementary policies are designed to promote national institutions. The restrictions on transnational banks range from outright prohibition of any further branches or only the rarest of exceptions, to outright prohibition, which restricts foreign branches to one per transnational bank and limits their location to the nation's capital. Home country governments can also affect the context in which transnational banks operate in numerous indirect ways: examples of this are their management of aggregate real demand and their foreign exchange controls.
Broader Problems:
Discriminatory business practicesProtectionism in the banking industryDiscrimination against foreign companies Related Problems:
Underutilization of world banking facilitiesAntiquated regulations in the banking industry Aggravates:
Limited availability of loans Subject(s):
Action → Action Amenities → Households
Commerce → Banking
Commerce → Credit
Commerce → Multinationals
Societal Problems → Protection
Societal Problems → Restrictions
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST