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The process of globalisation has started a long time ago but the effects still unknowable for many industries. During the last decades the world has seen a variety of financial crisis which occurred in many places, global finance means huge cross-border flows of money which can be a destabilising influence when things go wrong, and lead to crisis which threaten the world financial system itself. The world has seen a lot of substantial changes during the last two decades, especially the developing countries, which has very effective impacts on economic growth and social life.

These changes had led to the globalisation, which started when the worldwide trend of financial opening in the 1990s has restored degree of international capital mobility not seen since this century’s beginning. In industrialised countries the elimination of restrictions on capital flows accelerated in the 1980s and the 1990s, beginning with Margaret Thatcher’s reform in the united kingdom continuing with Japan’s liberalisation of capital inflows and outflows in the early of 1980s, and ending with the European community elimination of intra-community barriers to capital flows in the 1990s (on line).

With the growth of new technologies, the expanding global marketplace, people, goods and services are crossing borders at ever-increasing rates. Economic globalisation, aided by the growth of new technologies, has provided new opportunities for economic growth. This has created enormous economic and social benefits to some countries, but not to others, and disproportionately to some groups within those countries. It has also reduced the regulatory authority of national and sub-national governments (the public sector) and increased the power and influence of transnational corporations (the private sector).

The planet may be shrinking as far as business interests are concerned, but the gap between rich and poor within and between most nations is going in the opposite direction. This has profound implications for people in both the developed and developing world. This assignment will be focusing on analysing and assessing the trend towards globalisation of banking system and its impact on economic growth of developing countries and my analysis will be supported by some cases.

Moreover, from one study (On line) economic globalization described the integration of economic activities that were once more national or regional in scale to planet-wide functioning. This is not a new phenomenon, but has been a characteristic of capitalist economic expansion for at least a century or longer. The scale of this expansion, especially in speculative finance or “hot money,” is new. So, too, is the shift in corporate structure from a multinational corporation (one company selling its product in many countries) to a transnational corporation (one company with productive units spread throughout many countries).

Economic globalization has also been accompanied by a new regime in trade and investment liberalization. Financial institutions around the world are consolidating at rapid pace. The number of institutions is declining, their average size is increasing, and it is a rare week when no new bank merger or acquisitions are announced. The fact is, in the United States, the lifting of interstate banking restrictions in 1994 triggered a wave of mergers, and European integration has intensified consolidation in Europe which the introduction of the euro in January 1999 has further encouraged.

In many emerging markets, such as Argentina, Brazil, and Korea, consolidation is also well under way as banks seek to become more efficient and more resilient with respecting to shocks. Furthermore, developments in technology, and especially the impressive growth of Internet banks and brokerage services, have allows globalization to go beyond the ownership structure of financial conglomerates and to reach the retail markets.

In fact, many banks are using their online operation for expanding into foreign markets, avoiding the costly process of building retail brick-and-mortar networks of branches. Moreover, the emergence of alliances between major banks and telecommunications conglomerates suggests that, in the future, competition in the electronic marketplace will be fierce. In addition, the appearance of virtual banks and the development of electronic money for the global Internet market have created the possibility for the growth of non-bank institutions that provide credit, and collect funds from, the public.

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