Purpose of foreign branch bank

Question

Discuss the purpose of the foreign branch bank.

Answer 1

Foreign branch bank operates like local bank, though legally it is part of the parent bank.  As such, branch bank is subjected to the banking regulations of its home country and also country in which it operates. Primary reason for parent bank forms a foreign branch is that it may offer full range of services for its MNC customers through branch office in comparison to those it provides through a representative office.