ABSTRACT
Owing to the sheer complexity of multinational banking operations, it is an unreasonable expectation that they should be able to be described in any completeness in a simple diagrammatic illustration. In this chapter, while a model of certain multinational banking operations is provided in order to illuminate certain critical differences between these operations and those of a purely domestic bank, it is emphasised that it is difficult to provide by this means any more than an illustration, in simplified terms, of main decisions made within the context of one market and two currencies. As a means of simplification the results of the decisions illustrated are shown as affecting the proportion of funds to be held as reserves.
