Critically analyse and assess the trend towards globalization of the Assignment

Critically analyse and assess the trend towards globalization of the banking system and its impact on domestic banks. Identify a - Assignment Example The changes include demands from new trends as well as components within the internal organization that are being redefined. Definition of Research Problem The concept of banking is one which is based on national needs, as well as regional elements which are associated with various groups of individuals. However, globalization is beginning to change the internal and external environment while altering products and services offered by those who are a part of banking. This is now leading to several problems, specifically because of the different needs in various parts of the world. Currency exchanges, cost of living relationships, lending channels and basic operations are now being altered, specifically because of needs that are associated with different regions of the globe. The changes are now leading to alterations in market value and many banks which are either making changes domestically or which are becoming dependent on foreign investments and stocks for new opportunities with b anking (Cetorelli, Goldberg, 2008: 14). The research problem defines the problems which are occurring with global transfers as well as how this is redefining the services, products and transfers that are within various banking systems. Literature Review The concept of global banking is one which is now only beginning to surface as a way to work with the corporation of banking systems. In the past, there were basic services and products which were offered specific to the currency of a location. The services and products combined attributes of banking according to one’s culture, capital flows and the financial firms within a specific country. The changes today are now based on an expansion of services and products to help nations in various regions across the world while offering new products and services for changes with global banking. The concept of global banking systems includes the options of lower cost of capital, improved allocation and investments with property rights and institutions. The banking systems are incorporating micro-financing as well as basic services and products which can transfer across borders. Many in other countries are using this as one of the first methods for financing within the country (Mishkin, 2008: 135). The main capabilities for banking systems to establish at a global level come from the enhanced technology which doesn’t define the borders or other applications which are a part of the system. Information processing, telecommunications and other options are providing banks with new alternatives for going overseas. This is combined with the investment opportunities which are continuing to arise for those that are in the different countries. The financial technologies are one of the investments that are leading the way with those who are looking at global expansion from domestic relationships. However, this also limits the products and services which are available and defines a different type of system and sets of services which can be available overseas. Most that are transitioning into this are still experiencing barriers for entry with the government as well as with different needs that are from the technology and the expectations within a given country (Berger, 2007: 1955). Limitations to the Banking System While there are specific aspects that are related to technology, most are finding that this transition is one which is too new to offer complete security