ABSTRACT
The legal problems related to the Control of Transborder Movements of Capital have almost never been studied thoroughly. Currency protection can be necessary in countries with capitalist as well as state-owned economic systems. The minimum capital adequacy requirements exert an influence on the credit policy of a bank in that the bank's own funds as a rule become more expensive than outside capital. The assessment basis is purely the capital value disposed of, that is independent of the remaining life of the documented claim or tenure. This is one of the principal reasons why Swiss banks carry out a large part of the money market business for their clients through their branches and correspondents abroad. Economic development should above all be directed into regular channels and trade is only minimally limited, but on the other hand, damaging effects of speculative capital flows should be prevented.
