CURRENT DEVELOPMENT TRENDS OF EUROPEAN MULTINATIONAL BANKS

Abstract

Introduction. The article is devoted to analyzing the current state and development trends of multinational foreign banks on the global corporate landscape. Modern conditions of the world economic development and globalization have significantly shifted not only social and economic processes, but also increasingly influenced the restructuring of banking systems, which largely determine the trends of financial and economic development of all countries of the world. The purpose of this writing lies in clarifying the essence of the concept of "multinational bank" and identifying the main areas of multinational banks’ activities. Methods employed by the authors mainly relate to qualitative analyses of modern foreign scientific research on the essence of the activities of multinational banks of the European Union. Results. The essence of the concept of "multinational bank" is clarified, the main types of activities and financial services are distinguished, and the issue of typology and classification of banks is considered from the point of view of identifying potential opportunities for ensuring economic growth and achieving national well-being. It has been revealed that the main consequences of the influence of financial globalization on the functioning and development of banking systems are the concentration of bank capital, cross-border processes of mergers and acquisitions, which lead to the emergence of a small number of global banks that are able to control significant amounts of financial resources and influence the functioning of national banking systems. Corresponding trends in the international economy cause changes in banking systems, the emergence of new forms of integration ties, the emergence of powerful international banking institutions capable of controlling huge flows of monetary resources and determining the directions of development of entire countries. Conclusion. The processes of integration and consolidation in financial markets and the emergence of integrated financial intermediaries have played a decisive role in the development of international financial centers. Financial intermediaries form the institutional basis of financial centers, in which commercial banks, stock exchanges and transnational banking institutions occupy a key place. The high level of competition on the Western European financial market and the absence of a real possibility of significant business expansion forces banks to focus their attention on the smaller developed markets of Central and Eastern Europe.