Do large corporations and financial institutions contribute to the generation of globalization processes?

Question
11 answers

 Dec 27, 2018

Do multinational corporations and financial institutions, including banks and investment funds, play a significant
role in generating globalization processes?

In recent years, the importance of supranational large corporations and financial institutions, including banks and
investment funds, has been growing.

These large industrial, service, commercial and financial corporations are a particularly important factor in
contemporary globalization processes. If such large corporations operate cross-border, cross-border in many
countries, including small economies, generate negative processes of globalization, then in these countries reverse
and deglobalization processes may appear.

Deglobalization, ie the reverse process to globalization, is taking place most strongly in those economic regions in
which globalization processes generate many negative aspects.

In view of the above, I would like to ask you: Do multinational corporations and financial institutions, including
banks and investment funds, play a significant role in generating globalization processes?

Please, answer, comments. I invite you to the discussion.

How strong can be the impact of the banks' lending policy on the situation in the construction sector?

Question

13 answers

Feb 1, 2019

In many countries, a strong correlation was found between the change in the economic and financial
situation of enterprises and the credit policy of banks.

The research shows that there is a dependency, correlation between the change in the rate of economic
growth of the country, economic and financial situation of economic entities, citizens 'incomes,
enterprises' investment, investment risk, liquidity risk, debt, creditworthiness, creditworthiness of
enterprises, etc. and the changing the credit policy of commercial banks that provide corporate loans
and consumer loans to citizens.

However, in recent years, especially before the emergence of the global financial crisis in 2008, it was
possible to diagnose a reverse correlation, i.e. that banks, mainly investment banks in low interest rates
activated the entire banking sector, including primarily retail commercial banking to provide subsequent
mortgage loans even for borrowers no longer possessing creditworthiness. Credit rating agencies issued
the highest AAA recommendations for the loan packages sold, most of which were of low quality and
low creditworthiness. Insurance companies insured transactions of very high credit risk. Acting on behalf
of banks, the media published articles suggesting a good prospect of economic development, a
continuation of good economic conditions, including the real estate market, a further rise in property
prices. Many financial institutions, media institutions and investment firms participating in this
procedure commonly used unethical business practices.

In the light of the above, the following questions arise:

How should banking procedures be improved to prevent future use of such type of unethical business
practices?

How should the processes of improving bank credit risk management be carried out in commercial
banks, so that more such situations will not happen again, in order to avoid this type of another global
financial crisis?

How strong can be the impact of the banks' lending policy on the situation in the construction sector?

In view of the above, is this impact not too strong in periods of high economic growth, ..., in periods of
too high economic growth, overinvested investment projects financed mainly by loans and overvalued
securities on stock exchanges?

Please reply

Why do financial institutions in some countries verify the potential borrowers in the information
resources of social media websites with impunity?

Question

7 answers

Nov 5, 2018

Many business companies in internet marketing collect and analyze comments, posts, entries, etc. from
social media portals.

It is also done by some financial institutions, banks acquiring additional information about potential
borrowers and insurance companies against possible conclusion of insurance contract. Commercially
operating companies and financial institutions operate in this area on the border of the law on the
protection of personal data.

Until this type of acquisition of information about potential customers is legally regulated, then
commercially operating companies and financial institutions will conduct such activity. In addition, the
issue of the security of this type of data about users of social media portals is of particular importance,
as there have been effective cybercriminal attacks that resulted in the theft of personal data of users of
social media portals.