This is the Seventh Edition of the Basic International Banking Self-Study and the financial condition and operations of U.S. and foreign banks have changed dramatically since the First Edition was published in 1990. Most U.S. banks coped with large domestic and global loan losses incurred in the 1980s, and successfully improved earnings and capital by a sufficient margin to compete aggressively in the global financial markets during the 1990s. The turnaround was slower for many foreign banks, especially Japanese banks. The economic expansion of the 1990s was followed by a global recession early in the 21st century. Global growth slowed as a result of periodic banking and/or currency crises in Mexico, Asia, Brazil, Russia, and Argentina. The 2007 U.S. recession and the Global Financial Crisis that ensued in 2008 had far more negative implications on the global financial sector and economy than any other crisis since the Great Depression. The crises should remind bankers and regulatory examiners of the importance of identifying, measuring, monitoring, and controlling risks. All banks with international activities continue to originate international loans, trade foreign exchange, provide letters of credit and engage in cross-border derivatives transactions. Yet, many countries and private firms have elected to turn to the capital markets to raise funds by issuing securities rather than borrowing from banks. Global derivative trading continues to expand at a very rapid rate. The United States enacted the Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) in 2010 to reform the financial sector and derivatives markets. This Edition of the Basic International Banking Self-Study reflects each of the trends cited.