International Banking Industry Contributes $3 billion to Florida Economy.

Business Editors

MIAMI--(BUSINESS WIRE)--June 26, 2000

Florida International University (FIU) and Florida International Bankers Association (FIBA) have just released International Banking and Its Economic Impact for Florida. The study, which looks at total international banking activity in Florida, shows an economic impact of $3 billion in the local economy. The numbers are driven by three principal activities: trade financing, loans to banks in foreign countries, and private banking.

Employment totaled 5,586 persons with salaries in excess of $487 million. This is a 300% increase in payroll over comparable figures from a 1989 study. In addition to the direct payroll expenses, international banks spend over $304 million in non-payroll for rent, equipment, technology and other related expenses. Another source of revenue is the nearly 200,000 visitors to the banks each year.

"The results of this study show the importance of international banking to South Florida, not only in high-quality jobs for local residents, but also because of benefits from the multiplier effect," said Marcos Pereira, President-Elect of FIBA and General Manager of UNIBANCO. "These figures confirm Florida's privileged position as the commercial and financial hub for the Americas."

Dr. Roussakis, FIU's Acting Chairman of the Department of Finance, put Miami into a national perspective. "Miami's 13 Edge Act Corporations account for 64% of foreign assets managed by Edge Acts nationwide," said Roussakis, co author of the study.

"The Florida International Bankers Association will continue to work closely with regulators in Washington to encourage the approval of more foreign bank agencies from Latin America into the U.S. ," added Pat Roth, FIBA Executive Director. From 1993 to 1999, only 10 banks from Latin America were admitted into the US, of which only 2 were foreign bank agencies. This contrasts with the 29 banks approved during the same period from Asia. "Based on the positive economic impact of international banks and foreign bank agencies for Florida's economy, this is a tremendous loss of revenue for our community and our State," said Roth.

To obtain a copy of the economic impact study, contact FIBA at 305-579-0086 or on the web: www.fiba.net/publications. Florida International Bankers Association Inc. (FIBA) is a non-profit corporation founded in 1979, composed of 78 domestic and foreign institutions from 21 countries, operating in the state of Florida, and includes a limited number of supporting members whose activities are closely related to international banking.