International Banking

Operations
RICARDO PALMA UNIVERSITY
PRESENTATION AND WELCOME TO THE COURSE
SESSION 1
 ! Welcome ¡
Good afternoon dear students
I give you the warmest welcome
to this ciclo 2020-l .
In this opportunity l am going to
teach you the course
International Banking Operations
 Introducing the professor
 My name is Juan Francisco Guzmán Wilcox. l am
Business Administrator and got a Master degree
in International Business at the EAE Business
School, Madrid, Spain.
 I am very concerned about my personal
education because it has a direct benefit to my
students and that is why l am studying for
obtaining a Doctor Degree in Administrative
Sciences at San Marcos University and l will finish
and get my degree at the end of this year.
 My profesional experience is at the the Financial
System for over 30 years working in different
international and peruvian Banks.
Technical Recommendations

 Try to acces to internet through a network cable

because sometimes the wi-fi connections failed
 If possible look for the quietest place at home in
order not getting imterruptions
 In the same way, if it is posible avoid connection
through a celular or Ipad. With PC you will have
a better signal.
 Try to use headphones during the sesión for a
better sound
 Enter the virtual sesión 15 minutes before the
class begins
 International Banking Operations
Course Objectives
1. This course presents the fundamental insights of
international banking operations.
2. We will talk about different concepts related to
the Financial System, Financial Institutions and
Financial Markets.
3. Will explain about the Financial Intermediation
and the different types of Financial
Intermediation.
4. Investment Banking Operations and Capital
Market
5. Assets and Liabilities Management at the
Financial Institutions
6. Risk and insurance in banking operations and
Capital Market.
 GUIDELINES IN CLASSES
 Your previous knowledge of Finanancial Mathematics is required.
Concepts related to Nominal Rate of Interest, Effective Rate
of Interest (TEA) , Present Value, FutureValue, Annuities and
calculation of annual and flat commisions will be
permanently used.

 Interactive classes are going to be our style. Everybody

will participe in a very active way. In each class we will make
a brief review of previous class in orden to link it with the new
knowledge.

 Practical applications will be a constant in our course, using

examples centered in banking experiences sometimes related
with operations in Perú and others in the foreign countries so
is very important your assistance to all clases.

 Basic tool: Finantial Calculator or Lap top

 International Banking
Operations

SESSION PRESENTATION OF TODAY

Financial Institutions and Markets
 International Banking Operations
Session Objectives
1. Definition of a Financial Company
2. Definition of the Financial Intermediation of
funds.
3. Financial Intermediations exists in the world:
Direct and Indirect. Hugh explanation of
each one giving several examples for its
understanding.
4. At the end of this sesión all of you will be
ready to analyze the finantial market and
prepare a group task about all the
institutions that make up the Financial System
in Perú.
 ¿What is a Financial Institution ?

Is an institution, duly authorized by the

Superintendency of Banking Insurance and AFP,
just named as SBS, for getting funds from
people, natural and legal persons, and lend the
money to people who needs that funds.
 Banks. 16
 Municipals Co. for Saving and Credit funds CMACs 12
 Rurals Co. for Savings and Credit funds CRACs 6
 EDPYMES 9
 And others 10
I WILL EXPLAIN EACH ONE LATER
¿What is the meaning of the
Financial Intermediation ?
 This concept refers to the legal tools that let
the Financial Institutions be the cannel to
intermediate funds between people.
From a people sector who has funds
( surplus resources )
to other people sector who needs this funds .
( déficit resources )
These may be natural or legal persons
 Types of Financial
Intermediation
 Indirect : If it is done through the Financial
institutions. In this case the financial institutions
should do a very exhaustive evaluation of the risk
analyzing all the necesesary documents and
finantial statements of the persons who are going
to receive the loans. Qualification and
experience of the bankers are very important.

 Direct : If it is done through the Capital Market. In

this case both, who has the money and who
needs the mony, assume the risk in a personal
way.
THE TRANSPARENCY OF THE INFORMATION IS VERY
IMPORTANT AT THE CAPITAL MARKET
Capital Market or Stock Market
 The Capital Market, called too Stock
Market, is the place where are all the
funds you buy or sell are represented
in securities, such us stocks, bonds,
short term papers from the
companies, etc. This securities are
always issued and trade throug this
Capital Market.
Auto-Evaluation Questions
 ¿What is a Financial Institution?
 ¿What do you understand by Financial
Intermediation?
 ¿What de you mean by Direct and
Indirect Financial Intermediation?
 ¿What people usually trade at the Capital
Market?
 ¿What do you understand by Asset and
Liabilities?
 ¿What do you understand by Profit and
Cost? Explain the difference?
 Now you are going to analyze the
Peruvian Financial System
 Practical Application of knowledge

 Analyze all the institutions which belong to the Financial

System: Banks, Municipal Companies for Savings and Loans,
Rural Companies por Savings and Loans, Edpymes and the
other few that exist.
 Review the total Assets and Liabilities of each one
 Make a list begining with the biggest one and the smallest at
the end, tottalizing both, assets and liabilities.
 Remenber that : Tottal Assets equals Tottal Liabilities plus
Equities.
 Conclusions and recomendations of each work-group,
giving their opinión about Financial System in Perú, is very
important
Criteria por Work-Group
grading

 Word document 20 %
 PPt containing a summary of the
investigation 20 %
 Oral and individual presentation 30 %
 Answer of individual questions 30 %
 To make your research go the following
address in internet
 sbs.gob.pe
 Estadisticas,
 Sistema financiero,
 A la derecha :
 Banca Multiple, Estados Financieros por empresa bancaria,
Balance General y Estado de Ganancias y Pèrdidas, 2010,
diciembre 2019, click.
 Repiten lo mismo con las :
 CMAC
 CRAC
 Edpymes
 Other Financial Institutions
 Professor´s E-mail

Juan Francisco Guzmán Wilcox

juanfrancisco.guzman@urp.edu.pe