ABSTRACT
A variety of written and informal agreements with banking institutions abroad is essential to every bank that engages in international business. There are basically two ways by which these arrangements may be made. Correspondent banking relations may be established with other banks usually indigenous to the host country abroad. Such banks may offer reciprocal business despite the intense competition between banks for profitable business. The other course adopted is to channel the overseas business through a branch, subsidiary or affiliate organization with appropriate representation in the overseas country.
