POLITICAL RISK IN CROSS-BORDER OPERATIONS

Political Risk Is the Most Important Risk International Banks Face In Cross-Border Operations

Political Risk Is the Most Important Risk International Banks Face In Cross-Border Operations

Introduction

Political risk stemming from authoritarian or government measures such as authorized changes, particularly confiscation, expropriation and nationalization, as well as war or municipal unrest. The risks faced by an international bank with traverse boundary lending are distinct in nature from those of local operations. Within the local undertaking, the risks are not the identical for branches and subsidiaries. However, it is hard to notify which choice is riskier. It will very much count ...