International Banking Tutorial

This tutorial introduces the basics of international banking, covering topics relevant to banking exam preparation and finance courses in Sri Lanka.

What is International Banking?

International banking involves financial transactions that cross national borders. Sri Lankan banks like the Bank of Ceylon and Commercial Bank of Ceylon maintain international operations and correspondent banking relationships.

Key Concepts

• Foreign Exchange – The exchange of one currency for another. The Central Bank of Sri Lanka (CBSL) manages exchange rate policy.
• Letters of Credit (L/C) – A guarantee from a bank that a buyer's payment to a seller will be received on time and for the correct amount.
• SWIFT – The global messaging network used by banks for secure financial transactions.
• Correspondent Banking – An arrangement where one bank provides services on behalf of another bank in a different country.

International Banking Regulations

Banks operating internationally must comply with regulations such as Basel III capital adequacy requirements, anti-money laundering (AML) standards, and know-your-customer (KYC) procedures.

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