Transnational Corporations as Business Entities in the Banking Sector

Abstract

Introduction: the paper is devoted to the study of the essence of understanding TNCs in the banking sector through the analysis of such concepts as “transnational company (corporation)”, “international company (corporation)”, “international bank” and “transnational bank”. To this end, the author examines the concept and features of transnational corporations in the banking sector, their essential features, highlighted by the civil doctrine and used by judicial practice. Using the methods of scientific cognition, primarily the method of system and comparative analysis, the author identifies the constituent features of a transnational corporation by applying an insight-substantive approach to the study of the concept of TNCs as the largest intermediary in the system of international capital migration. Results: it is established that in the modern scientific literature there is no single approach to understanding the transnational corporation in the banking sector. In order to determine the main approaches to the understanding of TNCs in the banking sector, the author’s approaches to the definition of this phenomenon are systematized. The study identifies three groups of approaches: a TNC as a national company transcending the state; a TNC as a set of national companies; a TNC as a parent company operating in several states. Conclusions: the author concludes that a TNC in the banking sector should be understood as a transnational bank operating in several countries on the basis of an institutionalized network of representative offices operating on the basis of the national legislation of the countries of operation, which allows them to ensure the international movement of capital in order to diversify the economy and stimulate the innovative development of international economic relations.