Protection of national banking from international banking Restrictions of home countries on transnational banking activities Prejudicial treatment of multinational lending institutions
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.
At times, home country authorities have little incentive to facilitate the flow of funds to developing countries. Their primary concern is to protect the home financial system. Even those among them that are becoming more familiar with country analysis may at times have little understanding of the needs of developing countries for finance or of the development process. Thus, greater direct contact between home country banking authorities and borrowers from developing countries could have a salutary effect. A precedent for this exists in the cooperative efforts of central banks from countries in the Pacific Basin. In some cases, and to the extent that the policies of the transnational banks reflect those of their home country governments, it may be useful to draw the attention of those governments to the possible drawbacks of tied lending of any sort for borrowers in developing countries. The transnational banks that restrict themselves to financing the exports of their home countries are tying financial flows in a manner reminiscent of tied development assistance. As transnational banks with special relationships to their home governments supplant transnational banks which do not show such ties, the posture of their home governments toward lending to developing countries will become more important.
The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.
The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.
Non-profit, apolitical, independent, and non-governmental in nature, the UIA has been a pioneer in the research, monitoring and provision of information on international organizations, international associations and their global challenges since 1907.