8 International banking is a very different enterprise than two centuries ago, but it still “best deserves the attention of a statesman.” Cross-border finance is an essential part of the international economic infrastructure. It is a conduit to direct financial resources to their most efficient use, regardless of national borders.
It channels capital to places and projects it could not otherwise reach, fostering innovation, international ties, and the exchange of ideas. At its best, it is also self-sustaining, extending the financial and technical capacity of emerging economies, and expanding their role in the global economy. America’s experience, however, reminds us that the benefits of international banking are not automatic.