The opportunities for a bank to enter foreign markets.

There is a wide range of theories in the explanation behind the logic of bank expansion abroad, which provides possibilities that vary from case to case. Depending on how a bank chooses to enter a foreign market, it acquires the corresponding exposure in it. The simplest form of entry is through correspondent banking where you do not need a physical presence abroad, acquiring basic cash management services, transactions (domestic, foreign currency) and trade credit. It can be argued that responsive banking is not a strategy of competitive entry into foreign markets but an offer of services in foreign financial markets and to serve international customers without having to open branches abroad. Banking services for credit facilities (loans, overdrafts and pending loans) are not easily provided without the Bank's representation in the market.

When deciding to enter they should consider the cost of entry, exit and operation. The way to bring the lowest possible cost is a representative office, where it can not operate independently but only to attract and create business activities for the parent bank. Entry methods are different for different types of banks, specialized banks such as investment banks aαre more attractive in getting representative offices than setting up an agency or branch as there is no need to access basic functions such as deposits and loans but mainly financing the holding of securities through the commitment of these securities in repurchase agreements (repo). The branch in the foreign market is not an independent legal entity but an integral part as a legal and operational part of the parent company. The decision-making process is not fully outsourced but has greater autonomy compared to domestic branches, providing all the functions allowed by the host country's banking authorities where they are subject to banking supervision by both the parent company and the branch. . If it wants to enter as a separate legal entity to have its own funds, it will choose the subsidiary where it can be the result of an acquisition or a newly established company (greenfield) signaling a greater commitment with a more positive assessment of prospects for sustainability and business efficiency.

The financial operation of the bank that has entered the foreign market in addition to the functions of secured financing with assets, discounting invoices and agency. It has to do with the size of the foreign market client where traditional bank loans and overdraft financing are for relatively small businesses with international operations, as opposed to multinational bonds and syndicated loans. In general, the possibilities offered by a bank in financing bonds and letters of credit to foreign companies can be differentiated based on the company's experience in the market, issuing European Shares and Letters of Credit (LOC) for start-ups and securities, fund management, guarantees, collateral, and syndicated loans to finance essential projects.