Purpose of foreign branch bank
Discuss the purpose of the foreign branch bank.
Expert
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.
Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.
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