Small and medium sized companies are usually limited in their sources of finance to their domestic markets. Larger companies are able to seek funds in international financial markets.
International banks, most of which are large multinational enterprises are the most common financial intermediaries in the international financial markets. These banks assist multinational enterprises in the following ways:
(a) The financing of foreign trade
(b) The financing of capital projects
(c) International cash management services
(d) Providing full local banking services in different countries
(e) Trading i foreign exchange and currency options
(f) Lending and borrowing in the eurocurrency markets
(g) Participating in syndicated loan facilities
(h) Underwriting of eurobonds
(i) Provision of advice and information
The international money market and markets for short and medium term funds, includes the eurocurrency market.