What is the role of multinational banks in international investment?

A multinational bank is a multinational company that deals with special objects. Therefore, the development of multinational banks is first manifested in international direct investment through the establishment of overseas branches. In this process, multinational banks also indirectly participate in international direct investment activities through their equity participation in multinational companies, thus forming the integration of bank capital and industrial capital and promoting the internationalization of financial capital. However, the particularity of the business objects of multinational banks makes their functions significantly different from those of general multinational companies, that is, multinational banks mainly provide financial support and media services for international investment activities. Specific performance in the following aspects:

1. Multinational banks provide financing intermediaries for international investors.

International investment is the process of cross-border operation and allocation of funds, during which the imbalance between supply and demand of funds is a common phenomenon. On the one hand, there may be a huge investment gap when international investors invest. On the other hand, many international short-term credit providers may have huge capital supply. At this time, the emergence of multinational banks can realize the docking of capital supply and demand, so that funds can be effectively allocated; In addition, even if the total supply and demand of such funds are equal, there may be differences in terms of term and currency, which requires multinational banks to adjust by playing their own role as credit intermediaries.

2. Multinational banks provide efficient intermediary services for cross-border payment.

The biggest difference between multinational banks and domestic banks is that the former has a widely distributed network of overseas branches and correspondent banks, so it can provide global transfer clearing and cash receipt and payment services for investors' cross-border payment, reduce the transit time of funds and improve the efficiency of capital utilization.

3. Multinational banks can provide all-round information consulting services for international investors.