Banks And Foreign Policy

If the competition of foreign banks in the United States is wor­risome to bank officers, there is an even more nettlesome problem that American banks are discovering as they make loans to foreign governments. Some of our large commercial banks have been pro­viding the major portion of money needed by many overseas na­tions, but this business has serious implications. When these loans are not repaid on time they become disguised as financial aid to those countries, and in the eyes of the United States government the American bankers are indirectly making foreign policy deci­sions, thus diminishing our government's role in this field.

The ability of foreign countries to repay their loans usually de­pends on how much they can sell and export to the United States. This means that these nations must lobby for more favorable treat­ment so their exports can come into this country, and these re­quests must be considered in order to protect the safety of our nation's banking system. Thus when American banks decide to extend more loans to a foreign government, they are taking on the character of making foreign policy decisions.

Although these are not matters that will concern the new bank­ing employee, they nevertheless show how important our larger banks have become on the international scene and suggest some of the challenging positions experienced employees may find in those departments that handle the overseas loan business.

International intrigue, however, is an intangible aspect of bank­ing as far as jobs are concerned and offers few career opportuni­ties. Instead, your future might lie with the Federal Reserve or one of the several government-sponsored banks. But it will probably start with the familiar commercial or savings bank, or perhaps with a credit union, a cooperative bank, or a consumer loan or mortgage banking office, depending on your special interests and skills as well as available job opportunities. There are approxi­mately forty-eight thousand commercial or full-service banks in the United States, ranging from fewer than ten employees to more than ten thousand in metropolitan areas. Many of these banks op­erate one or more branches in addition to their main offices. Be­fore we examine each of these institutions, perhaps it would be useful to familiarize ourselves with a typical commercial bank.