International Banking

There are issues that are involved in expanding any business be it a bank or a manufacturer. When a bank expands from a domestic bank to an international bank there are many issues that need to be identified and looked at to ensure that there is a strategy and implementation ready when the domestic bank moves to an international bank. There are many different ways that can make a bank flourish or fail in the international area, but as the senior vice president it is important to strategize and implement a way of being prepared to work towards ensuring that the bank expands properly.

Macro environments are when the opportunities and threats to the banking industry as a whole are identified and are outside of the control (The Macro Environment Analysis, 2012). This can be if the bank expands into Greece and the economy over there is still in extreme turmoil the banking industry is not going to fare well in that type of environment, but in Kuwait where the economy is flourishing it is important to understand how the banking industry will grow in that country. Another thing to consider is the interest rates in the countries that the bank is looking at to expand into and how many other banks they are going to be competing with in the country. Many people feel very strongly towards banks that are home grown banks instead of international banks. It is also important to identify the inflation and unemployment rates. If inflation and unemployment rates in the country are high then there is a less likely chance that there is going to be any money to deposit in a new bank. Also, politicians may play a part in how the citizens see the bank, technological trends and how they are shifting, legal trends, social/cultural trends, and demographic trends in the countries.