Presentation Transcript

1. F O R E I G N M U L T I N A T I O N A L C O R P O R A T E B A N K I N G Matthew Beardall Greater Washington Area Market President Indo-American Chamber of Commerce May 24, 2012 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
2. Agenda Commitment to India Credit Cash Management Foreign Exchange Personal Solutions for Relocating Employees 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
3. Commitment to India JP Morgan Chase &Co. has been in India since 1945 Primary office in Mumbai Over 7000 associates in India Comprehensive banking product offerings in-country and for worldwide subsidiaries 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
4. Credit Credit facilities can be committed or uncommitted. It depends on the Bank in the U.S. Working Capital/Revolving Lines of Credit Term Loans for building purchases or acquisitions Global Trade, Trade Finance and Letters of Credit Equipment Finance There are four primary methods of funding an International Subsidiary: Capital Injection from Parent Loan from Parent Company Bank in India Secure US Based Loan with Letter of Credit from Parent Company Bank Leverage US Assets, Provide Parent Guarantee Key Considerations: Most banks require 3 years of financial statements (Audited preferred, but not required) Covenants are normally required on the U.S. borrowers Financial statements on the Parent may be necessary as part of the underwriting process Credit structures are impacted by borrower’s industry 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
5. Cash Management Working Capital Solutions: Full Service Accounts Check writing capabilities still prevalent in the US Commercial Card Products Merchant Processing Services Reporting capabilities for the Global Corporate Controller to see and perform account activities all over the world. Considerations: Some U.S. subsidiaries prefer autonomy to run their Treasury Most foreign parents want visibility and excess cash returned to headquarters Need to consider solutions that achieves both objectives 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
6. Foreign Exchange Foreign Exchange Services On line and Advisor based FX capabilities to assist with such activities as repatriating funds, buying inventory, etc Most U.S. subsidiaries manage their spot rate conversions to send foreign payments Hedging the currency risks are available to most U.S. subsidiaries; however, in a majority of cases the hedging is managed by the Foreign Parent 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L
7. Personal Solutions Personalized, Multilingual Service Professionals who understand the unique personal banking needs of relocating foreign nationals Checking and Savings account Credit Cards and Debit Cards Car Loans Wealth Management 3 S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L