Credit relationships are now a crucial factor for clients deciding on a bank to which to award their interest rate and foreign exchange business. US-based consultancy firm Greenwich Associates says that almost two-thirds of FX users and three-quarters of those using interest rate derivatives do business only with banks that lend money.
The Greenwich survey indicates that 23% of companies using FX and 20% using interest-rate derivatives say they require a minimum lending commitment from banks that want to be among the top three dealers in these products.
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