International banks transcend the functions of a domestic bank because they link savers and borrowers across different countries. Consequently, an international bank helps people and businesses engage in international trade and finance. Furthermore, an international bank helps with foreign-currency exchange rates and holds inventories of foreign currencies. For example,HP Corporation enters into a contract with a firm in Hong Kong to buy memory chips. HP goes to an international bank, where the bank grants a short-term loan for the memory chip purchase. Bank helps HP pay for the memory chips and can help HP with the currency exchange rates.
Source: Ken Szulczyk. “Functions of International Banks.” Money, Banking, and International Finance. Boundless, 10 Jul. 2015. Retrieved 13 Jul. 2015 from https://www.boundless.com/users/233416/textbooks/money-banking-and-international-finance/international-banks-4/international-banks-25/functions-of-international-banks-64-15162/