International Banking: Innovations and New Policies

155 Pages·1988·13.881 MB·English

by  Charles Iffland, Pierre Languetin (auth.), Zuhayr Mikdashi (eds.)

INTERNATIONAL BANKING
International Banking
Innovations and New Policies
Proceedings of a colloquium held by the Ecole des Hautes Etudes
Commerciales de l'Universite de Lausanne
Introduced by
Charles Iffland
Dean, Ecole des Hautes Etudes Commerciales
and
Pierre Languetin
Chairman, Swiss National Bank
Edited by
Zuhayr Mikdashi
Professor of Banking and Financial Systems
University of Lausanne
Palgrave Macmillan
© Ecole des Hautes Etudes Commerciales, 1988
Softcover reprint ofthe hardcover 1st edition 1988 978-0-333-44712-3
All rights reserved. For information, write:
Scholarly & Reference Division,
St. Martin's Press, Inc., 175 Fifth Avenue, New York, NY 10010
First published in the United States of America in 1988
ISBN 978-1-349-09708-1 ISBN 978-1-349-09706-7 (eBook)
DOI 10.1007/978-1-349-09706-7
Library of Congress Cataloging-in-Publication Data
International banking / edited by Zuhayr Mikdashi; introduction by
Charles Iffland.
p. cm.
Proceedings of a colloquium sponsored by the Ecole des hautes
etudes commerciales de l'Universite de Lausanne.
Bibliography: p.
Includes index.
ISBN 978-0-312-00862-8
1. Banks and banking, International-Congresses. I. Universit~
de Lausanne. Ecole des hautes etudes commerciales.
HG3881.I57513 1988
332.1'5--dc19 87-21276
CIP
Contents
Notes on the Contributors vii
Acknowledgements xi
1 Introduction: International Banking at the Crossroads
of World Economic Relations
Charles Iffland 1
2 Introduction: Transformation of the Banking and
Financial Environment
Pierre Languetin 7
3 The Changing Face of Banking Services and Strategies
Robert Holzach 11
4 The Evolution of Banking Strategies and Services: The
Dilemma facing Today's Bankers
Hans H. Angermueller 25
5 A Developing Country's Case: The Brazilian Financial
System
Delauro de Oliveira Baumgratz 45
6 Japan and the Integration of Financial Markets
Shijuro Ogata 55
7 The Big Bang: Integration of Financial Markets
Patrick Limerick 61
8 Implications of Global Financial Intermediation
Harry L. Freeman 73
9 The Integration of the Financial Markets - A French
Perspective
Jean-Yves Haberer 85
10 Monetary Policy and Financial Innovations
Pierre Languetin 103
v
Contents
VI
11 Effectiveness of Monetary Policy and the World
Financial System
E. Gerald Corrigan 111
12 Monetary Authorities and the New Banking
Environment
Helmut Schlesinger 117
13 The New Banking Environment - A Risky Game
Franz Galliker 123
14 Whither the 'New Finance'? A Synthesis of Issues and
an Essay of Reflection
Zuhayr Mikdashi 129
Author Index 147
Subject Index 148
Notes on the Contributors
Hans H. Angermueller is Vice-Chairman of Citicorp and its principal
subsidiary, Citibank NA. His responsibilities include oversight of
legal and external affairs and administrative supervision of the Audit
Division. Mr Angermueller is Chairman of the Board of Directors of
Munich American Reinsurance Company and Munich Management
Company, subsidiaries of Munich Reinsurance Company of Ger
many. Other affiliations include the Council on Foreign Relations;
Member of the Board of Directors, Association of Bank Holding
Companies; Past Chairman of the Government Relations Council,
Association of Reserve City Bankers; Member of Governor Cuomo's
New York State Business Advisory Council.
Delauro de Oliveira Baumgratz is Member of the Board and
Executive Director of the Banco do Brasil SA since 1985. From 1979
to 1982 he was Member of the Board and Executive Director of the
Banco do Nordeste do Brasil SA (Foreign Exchange, Financial and
Market Relations) and Member of the Capital Market Advisory
Committee, at the National Monetary Council. He translated several
essays on politics, sociology and political economy. He is the author
of The Structure of Funds of Development Banks - a case in point:
BNB - Banco do Nordeste do Brasil.
E. Gerald Corrigan became the seventh Chief Executive of the
Federal Reserve Bank of New York in 1985. Prior to this
appointment Mr Corrigan was President of the Minneapolis Federal
Reserve Bank for four and a half years, and member of the Federal
Open Market Committee (FOMC) , the Fed's principal body
responsible for establishing national money and credit policies. He
also served as Chairman of the System's Pricing Policy Committee.
Mr Corrigan's career at the New York Fed began in August 1968,
when he joined the domestic research division as an economist after
teaching economics at Fordham University in 1967-8.
Harry L. Freeman is Executive Vice-President, Corporate Affairs
and Communications, at the American Express Company. Mr
Freeman's responsibilities span several areas: 'Government Affairs' ,
which advances the interests of the company and its subsidiaries with
vii
viii Notes on the Contributors
respect to governments at all levels in the USA and abroad; 'Internal
and External Communications', which ensures that communications
about the company and its subsidiaries are provided in a consistent
and comprehensive way; 'Public Responsibility', which covers public
issues affecting the company, with particular concern for consumer
issues and includes the American Express Foundation, US and
international projects in the areas of education, the arts and
community service.
Franz Galliker has been Chairman of the Board of Directors of the
Swiss Bank Corporation in Basle since 1984. He began his career with
the Swiss Bank Corporation as a legal counsellor in 1954. In 1964,
after nearly two years' stay at its London branch, he was given the
assignment of developing the head office's export credit operations.
He then became Manager of the bank's Basle branch in 1970. Two
years later he was named Central Manager and Member of the
Executive Board with primary responsibility for international credit
activities. In 1975 he was appointed General Manager. His other
business appointments include the directorships of Alusuisse, Brown
Boveri, Ciba-Geigy, Holzstoff and Sulzer Brothers.
Jean-Yves Haberer was appointed Inspector-General of Finance in
1980 and assumed the Chairmanship of the Compagnie Financiere de
Paribas from 1982 to 1986. He has also been President of the
Supervisory Board of the Compagnie Bancaire (1982), President of
Paribas International (1984) and member of the board of directors of
numerous companies, including S. G. Warburg, Mercury Securities,
Compagnie Fran~aise des Petroles and Roussel Uclat. In 1980 he
presided over the Monetary Committee of the EEC. In 1970 he was
appointed Professor at the Institut d'Etudes Politiques de Paris. M.
Haberer is author of La Monnaie et La Politique Monetaire (1972) and
Les Fonctions du Tresor et La Politique Financiere (1973).
Robert Holzach, Chairman of the Board of the Union Bank of
Switzerland, and member of the Board of Directors of major firms in
Switzerland and the Federal Republic of Germany, joined the Union
Bank of Switzerland in 1951 after completing his legal training.
Appointed General Manager in 1968, he headed the Administrative
Division. From 1976 to 1980 Dr Holzach was responsible for the Staff
Departments of the General Management and for co-ordination
within the General Management. In 1980 the General Assembly
elected him to the Board of Directors of which he became Chairman.
Notes on the Contributors lX
Charles Iftland, who was Dean of the Ecole des HEC from 1976 to
August 1986, is Professor of Development Economics, National
Income Accounting, and Analysis of the Economic, Political and
Social Business Environments. He is also member of the board of
several companies. Prior activities at ICAME, Stanford University,
Centre de Recherches Europeennes, Lausanne, and in a London
business. Among his publications are: L'Approvisionnement de La
Suisse en matieres premieres et ['organisation de ['Europe (1960),
L'Aide aux pays pauvres dans ['impasse (1967), Les Investissements
industrieLs suisses au Bresil (1973), and Les Investissements industriels
suisses au Mexique (1978).
Pierre Languetin is Chairman of the Governing Board of the Swiss
National Bank and a Member of the Board of Directors of the Bank
for International Settlements. He began his career in international
economic relations at the OEEC (now OECD) in Paris. In 1955 he
was appointed to the Trade Division of the Federal Department of
Economic Affairs and in 1966 he became a permanent delegate of the
Federal Government for Trade Negotiations and Head of the Swiss
delegation at the European Free Trade Association (EFTA) in
Geneva, with ambassadorial rank. Mr Languetin was commissioned
by Switzerland to negotiate accession to the International Energy
Agency (1974) and served on the organisation's Board of Directors
from 1974 to 1976.
Patrick Limerick was appointed Vice-Chairman of Kleinwort Benson
in 1983 and became Deputy Chairman in 1985. After fourteen years
in the domestic and international departments of the banking division
of Kleinwort Benson, for the last five years of which he was on the
Board, Lord Limerick was invited to join Her Majesty's Government
in April 1972. As Parliamentary Under-Secretary of State at the
Department of Trade and Industry he held Ministerial responsibility
for external trade, export credits and certain domestic functions
including company law. Following the General Election in February
1974 he returned to Kleinwort Benson to take charge of Project
Finance.
Zuhayr Mikdashi (D.Phil., Oxford) is Professor of Banking and
Financial Systems, and of Petroleum Economics at the Ecole des
HEC since 1976. He has been a consultant to the World Bank in
Washington, DC, the UN, and other inter-governmental agencies
and financial groups. Among his principal publications are: A
x Notes on the Contributors
Financial Analysis of Middle Eastern Oil Concessions: 1901-65
(1966); The Community of Oil Exporting Countries - A Study in
Governmental Cooperation (1972); The International Politics of
Natural Resources (1976); and Transnational Oil - Issues, Policies
and Perspectives (1986).
Shijuro Ogata was the Deputy Governor for International Relations
of the Bank of Japan in 1986. From 1974 to 1975 he was the bank's
Deputy Director of the Foreign Department, and then served as
Representative in New York for the next three years. After his
appointment as Advisor to the Governor in 1978-9, he was appointed
Director of the Foreign Department. Mr Ogata was promoted to
Executive Director in 1981 and served in this position until 1984,
when he was appointed Deputy Governor for International
Relations. In late 1986 he became Deputy Governor of the Japan
Development Bank.
Helmut Schlesinger (Dr Oec.publ.) was appointed Deputy Governor
of the Deutsche Bundesbank in 1980. Apart from the Office of
Deputy Governor he is responsible for research and statistics and
thus for basic monetary policy questions and analyses of the
monetary policy and overall economic situation. Dr Schlesinger is the
author of a number of scientific publications from his fields of work:
public finance, national accounts, business cycle analysis and
economic policy, and mainly monetary policy. In 1981 he was
awarded the Ludwig Erhard Prize for economic journalism. In 1986
he was appointed Honorary Professor at the Speyer Hochschule fUr
Verwaltungswissenschaften Speyer.