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When deliberating over new regulations on large financial institutions, it is important to balance the benefits of regulation against the costs. Large banks provide valuable services to multinational companies that enable them to grow into markets, create jobs, and innovate. To demonstrate this value, the Business Roundtable surveyed their nonbank members and found that virtually all members rely on large banks for a wide-variety of financial services and products.

Global U.S. Companies Require A Large Scale And Scope Of Global Financial Services To Compete Around The World. “To grow and remain internationally competitive, companies must obtain the financial resources with which to fund ongoing operations and investments involved with expansion. Globally engaged firms operate in multiple locations with potentially myriad currencies, and as a result they must obtain financing in multiple locations under differing economic conditions and legal environments. Globally engaged firms likewise need a range of supporting services, including expertise about local laws and business practices, references and introductions to local business partners, and expertise on how to best navigate local regulatory and administrative regimes.” (“Business On Banking: How Large U.S. Financial Institutions Help Companies Create Growth And Opportunity For America,” Business Roundtable, 10/4/13)

Virtually Every Multinational Company Uses A Large U.S. Bank. “To shed light on the degree to which its members rely on the services of large, globally active U.S. banks, the Business Roundtable conducted a survey of its 212 CEOs in July and August 2013, with nearly 70 percent (148) completing the survey. Nearly all of the respondents (98 percent) reported that their companies rely on large, globally active U.S. banks to provide services to facilitate domestic operations, while 89 percent rely on these banks for their foreign operations.” (“Business On Banking: How Large U.S. Financial Institutions Help Companies Create Growth And Opportunity For America,” Business Roundtable, 10/4/13)

Large Banks Are Valued For Their Ability To Provide Services At Scale And Varied Locations – Many Companies Value A One-Stop Shop. “Large U.S. banks offer several advantages that lead globally engaged American firms to rely on their services. The most important is that these banks can deliver the financial services needed by globally engaged companies quickly, at scale, and at varied locations. For these firms, having global service providers is a necessity, and for some firms it is important for these services to be provided by a single entity. The survey illustrates this point; nearly half of Business Roundtable CEOs who responded to the survey characterized as ‘important’ or ‘very important’ the ability of large banks to serve as a ‘one-stop shop’ for their domestic and international financial needs.” (“Business On Banking: How Large U.S. Financial Institutions Help Companies Create Growth And Opportunity For America,” Business Roundtable, 10/4/13)

Large US Companies Require A Wide Range Of Unique Services Offered By U.S. Global Banks. “A sophisticated suite of financial products and services – including debt and equity offerings, foreign exchange, large loans, swaps and derivatives, and trade finance – is widely used by Business Roundtable member companies. Approximately 70 percent of CEOs indicated that three or more of these products and services are ‘essential’ to their companies’ operations.” (“Business On Banking: How Large U.S. Financial Institutions Help Companies Create Growth And Opportunity For America,” Business Roundtable, 10/4/13)

Rapid Growth In Emerging Markets Will Increase The Importance Of Global Banks In The Future. “While U.S. markets continue to be critical to globally engaged U.S. companies, the rapid growth in foreign markets is a persistent and ongoing trend that will increase the importance of large U.S. banks. Between 1991 and 2011, U.S. annual GDP growth averaged approximately 2.4 percent, slower than average global growth of 3.4 percent, and substantially slower than growth in India (6.6 percent), China (10.4 percent), and developing countries as whole (5.0 percent)…. These trends suggest that the success of globally engaged U.S. companies hinges on the global marketplace as a source of new customers.” (“Business On Banking: How Large U.S. Financial Institutions Help Companies Create Growth And Opportunity For America,” Business Roundtable, 10/4/13)