ABSTRACT
The main question that arises from the analysis of this Part is – what are the differences between these operations and those shown in our unregulated and regulated domestic bank models? The essential difference appears to be that the multinational banks are most vulnerable to price risk and, owing to the spread of their operations and the number of markets they can tap, much less vulnerable to quantity risk than are regulated domestic banks. The unregulated domestic bank faces the problems of quantity risk in relation to its flows of funds and the level of liquidity of its voluntary reserves, but as it is itself the price-setter it does not face price risk.
