Banking institutions are created to fulfill the demand of majority of customers involved in speculative and commercial trading. The banking institutions offer forex related products according to the needs and requirements of their customers. Since, they have to fulfill their demands in ever changing forex market. The banking products vary with size and nature of bank. Therefore large sized banks offer currency swaps, currency futures, option-dated currency forwards and currency options .A large banking institution has a very good ability to conduct daily transactions of worth billions of dollars and they can be easily undertaken on behalf of customers and proprietary desks while utilizing bank’s own accounts.
A study by Greenwich Associates reveals that the top foreign exchange dealers are dominated by large banking companies like Royal Bank of Scotland, Deutsche Bank, UBS, Citigroup, and Barclays.Large global banking companies like Deutsche Bank and UBS hold more than 10% of the overall forex market share.