1. Commercial Banks: Commercial banks all over the world extend foreign currency loans for business purposes. They arc an important source of financing non-trade international operations. The types of loans and services provided by banks vary from country to country. 

2. International Agencies and Development Banks: A number of international agencies and development banks have emerged over the years to finance international trade and business. These bodies provide long and medium term loans and grants to promote the development of economically backward areas in the world. These bodies were set up by the Governments of developed countries of the world at national, regional and international levels for funding various projects. The more notable among them include International Finance Corporation (IFC), EXIM Bank and Asian Development Bank.

3. International Capital Markets: Modern organizations including multinational companies depend upon sizable borrowings in rupees as well as in foreign currency. 

Prominent financial instruments used for this purpose are:

(i) Global Depository Receipts (GDR’s): 

• Global depository receipts or certificate created by the overseas bank outside India dominated in dollars and issued to non-resident investors against the issue of ordinary shares of issuing company. 
• The depository receipts are marketed in Europe and United States of America or both.

(ii) American Depository Receipts (ADR’s): 

• The depository receipts which are issued by a United States of America Bank for trading only in American Stock markets are known as American Depository Receipts. 
• Securities of a non-U.S. company that traded in the U.S. financial markets. 

(iii) Foreign Currency Convertible Bonds (FCCB’s): 

• Foreign currency convertible bonds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period. Thus, a holder of FCCB has the option of either converting them into equity shares at a predetermined price or exchange rate, or retaining the bonds.
• The FCCB’s are issued in a foreign currency and carry a fixed interest rate which is lower than the rate of any other similar non convertible debt instrument. FCCB’s are listed and traded in foreign stock exchanges.