Banks and financial institutions have long been players in the international marketplace. But the world of international finance has changed dramatically over the years. The Latin American debt crisis of the 1980s, the Asian financial crisis, the wave of institutional mergers, the rise of technology and the creation of the single European currency have all changed the nature of the international banking world, and as a result, the job market within it.

Opportunities can be found in both commercial and investment banks. What's the difference? Traditionally, commercial banks have been in the business of lending, while investment banks provide services -- such as assistance with mergers and acquisitions and underwriting equities to corporations.

The differences are due primarily to regulation. The federal government has stipulated what commercial and investment banks in the US can and cannot do. However, these days the line between commercial and investment banking has become increasingly blurred, and commercial banks have assumed many functions traditionally performed by investment banks.

Job Outlook

As banks merge, there are fewer, but larger, players in the world markets. This has increased competition and led to cost-cutting measures, including industrywide layoffs. However, many of the banking jobs that remain are well-paid, intellectually stimulating and exciting. International divisions have been replaced by the concept of integrating global interactions throughout the entire organization. The end result, however, is a wider variety of jobs with a global dimension.

What does this mean for the job seeker interested in international banking? "Banks are still hiring, and they still offer some of the best jobs around," says Martin Rust, who wrote the chapter on banking for Careers in International Affairs. However, Rust notes that most jobs can be found with the larger banks located within the US. For overseas bank positions, the trend is to hire local personnel. Banks -- and many multinationals -- have found that this approach is less expensive and less risky. The exceptions are mid- to senior-level banking positions, which are often filled by expatriates.

Foreign banks in the US represent another employment option. Many of these institutions have less structured recruitment policies, so job seekers must work hard and be creative to find open positions. Keep in mind that the work culture may be quite different from what you are used to -- a plus, or a challenge, depending on your point of view.

Typical jobs are in private banking, asset management, trading, mergers and acquisitions, and corporate and project finance.

What Employers Want

"It is not critical to have an MBA, but you must show strong evidence of business or finance focus," Rust says. Commercial banks have traditionally been more flexible about non-MBAs than investment banks, but prior work experience is important and often required.

A big debate among employers and banking professionals centers on foreign-language proficiency. The consensus is that a foreign language is, as one employer put it, "icing on the cake." More important are technical skills, appropriate training and relevant expertise.