World Bank Document

Figure 8.1 Net position of developing countries with commercial banks, 1974, 1979, and 1983
0
Billions of dollars
0 -50 -100 -150 -200 -250
~~~~~~~~~~~~~~~19749'
0
-50 7= _
0~
Note: Net positions are calculated by subtracting liabilities from assets held with banks reporting to the Bank for International Settlements.
Source: BIS QuarterlyReport 197485.
Box 8.1 Developing-counU banks
dy
In many developing countries, the growing presence of Brazilian banks have also been active managers, while
industrial-country banks has provided significant com- some Arab banks have become major international
petition for local banks. They in turn have expanded lenders (see Box 8.2).
their international operations to include:
* Borrowving
the international interbank markets. Some
* More branches and representative offices in the major developing-country banks won the confidence of the
internationalfinancial centers. Banks from the newly indus- interbank market and have been able at certain junctures
trializing countries have often followed domestic compa- to use it for funding some domestic lending. They have
nies abroad, financing their trade and other activities. therefore enjoyed cheaper financing than that offered by
Other banks have set up branches where migrant work- more traditional types of loans.
ers have settled, serving as a channel for repatriating The international experience gained by developingtheir
savings.
country banks has benefited their domestic operations as
* Lending in the Eurocurrency markets. One example is well. Not only have they been able to identify new busithe
State Bank of India, which has arranged a large share ness and develop markets, they have also introduced
of India's syndicated loans and played a role in manag- new techniques and ideas into the financial systems of
ing loans to a number of other countries. Mexican and developing countries.
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