Global Business Environment Strategy

The Globalization Impact on Banking

Daoud Al Hout

Global Business Environment Strategy

Charisma University

Dr. Pol Lim, Francis

September 25. 2022

Global Business Environment Strategy 2

Abstract

The global banking structure has undergone many changes in the last few

years. Regulatory changes have been affected, substantial advances in banking

technologies, the extensive dominance and acceptance of the marketplace economy

by less open economies, and the increase and integration of worldwide financial

markets and organizations have shaped new opportunities and challenges for

worldwide banking establishments. While these transformations have given an

extended opportunity dedicated to banks, they have also strengthened the

completive pressure in the worldwide banking field (Hicks, Raymond). Based on

banking experience I had over 18 Years with international bank and local banks,

noticed that the link between bank globalization and productivity from the angle of

each host and residential countries. Realized strong and consistent proof that

foreign bank entry is related to lower productivity in host countries (host-country

effect), whereas foreign enlargement within the banking sector improves the

productivity of banks reception (home-country effect). we tend to more observe

that the result of bank globalization relies on the restrictive and institutional

regimes of the several host (home) countries. Specifically, demanding activity

restrictions, tight supervising, fewer limitations on foreign banks, lower market

Global Business Environment Strategy 3

entry barriers, and fewer government interference all facilitate mitigate the

productivity loss from foreign bank entry. Less supervising power, multiple

supervisors, additional restrictions on foreign banks, and a competitive banking

market are all contributive to the upper productivity gain of incumbent domestic

banks from the several country’s outward investments within the banking sector.

Moreover, I also noticed that the adverse impact on productivity from foreign bank

presence is a smaller amount pronounced for fewer risky, additional profitable, and

larger banks, whereas banks that are additional productive, more profitable, taking

over additional risk, and/or smaller gain more productivity from their country’s

foreign enlargement

Keywords: Globalization, Banking Technology, International, Markets,

Commercial Banking.

Introduction

Increasingly what happens in local areas is influenced by the activities of

individuals and systems working around the globe. Banking and retailing, an

example, have accepted new technologies that include less face-to-face

communication. For example, a Customer may interact with the BankBank with a
Global Business Environment Strategy 4

contact center far away, or when a Customer buys an item over the internet, the

only person who might speak to the buyer is the delivery driver. Sometimes no

one contacts the buyer. The goods will be in the mailbox in the buyer's house. As

well, actions in the world services, products, and money markets can significantly

impact an individual’s survival across the world. Sophisticated data systems have

shown that globalization is possible. However, to present how the economy is

impacted by globalization, all one has to do is inspect the impact on all of the

global markets when the U. S. economy had depression and when the European

independent debt crisis happened in Greece, Portugal, and Spain.

The internationalization of financial markets, technology, digitalization,

and some manufacturing and services carry with their borders. In addition, the

appearance of institutions such as the World Bank and the European Central Bank

involves new restrictions (Williamson, John). While the inspiration of national

situations may have shrunk as a part of the globalization procedure, it has not

vanished. A key aspect of globalization is the nature and influence of

multinational corporations. Businesses now account for over 33% of world output

and 66% of world trade (Gray 1999: 62). Meaningfully, something like a sector of

world trade occurs inside multinational companies.

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Financial Effects of Banking Globalization System

Banking has suffered several dramatic changes in the last twenty years.

International trade has had a significant impact on the need to control the banking

industry on a worldwide basis. There are in-depth regulatory changes, advances in

data and banking technologies, the acceptance of free enterprise by former non-

capitalist economies, and increased integration of international financial markets

and establishments. These have created new opportunities and challenges for each

U.S. and international banking industry. Whereas these have provided an enlarged

chance for banks, they need to enhance the completive pressure within the world

banking arena. International banks still proliferate in countries aside from their

own, which significantly impacts competition. The continuing existence of a bank

in this progressive world competitive setting is directly coupled with its

performance and economical operation. Deregulatory banking acts, combined

with inflated globalization and the integration of economic establishments and

markets, produce a lot of competitive environments that generally increase the

potency of banking operations (International Monetary Fund). It has been

perceived that inflated competition because of economic process and release

should affect tiny banks and enormous banks equally. "The banking sector is
Global Business Environment Strategy 6

among the most critical economic sectors and also the most essential and

responsive to changes, whether or not international or domestic (Kenawy).

With their economic power, economic size, and high economic

performance, the larger banking entities have a vast capability to influence the

market trends and international growth of banks in altogether elements of the

globe. Banking globalization does not mean abandoning the domestic market but

moving to produce banking services within and outdoors, maintaining the

national position, and becoming more efficient, capable, and active in

guaranteeing banking enlargement. Globalization is not a framework for

interaction in most because it may be an inducement of expansion. Thus, the

economic banking process attracted for many reasons and, at a similar time,

should be joined to {the growth of the BankBank and its expansion while

enhancing its capabilities. Several studies on globalization indicate that it is a

large-scale impact on the banking industry of any country in the world. The

economic effects of the economic process on the banking industry could also be

positive or negative. Therefore, the task of these accounts of the management of

the banking industry is to maximize the positive and negative effects. Reference

could also be created to various significant economic effects of globalization on

the banking industry conducting the subsequent analysis.

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First, there has to be a diversification of banking activity and, therefore,

the tendency towards dealing in monetary derivatives. This includes the

diversification of service in banking at the funding sources, the issue of

marketable deposit certificates and long-term loans from outside the banking

industry, the diversification of loans granted, and the institution of banking and

securing holding firms. In alternative words, bank debts have to be compelled to

be transferred to securities and interested in new investment areas like

investment banking and therefore the funding of the privatization at the financial

gain level to have interaction in non-banking areas, then the tendency to deal

chiefly in currency transactions, provision of securities, the institution of

investment funds, and insurance issue through sister insurance firms for the

management of investments of holding firms for the benefit of customers.

Information and Globalization impact on the banking industry

With increasing globalization, banks became exposed to external and

internal risks. They had to use caution regarding risks using many suggestions.

The foremost important of those is strengthening capital. The criterion of capital

adequacy became progressively vital since it was approved by the Basel

Committee in 1988, and it became a must for banks to abide by it as a worldwide

criterion. Banks were affected; however, this criterion is because the ratio of
Global Business Environment Strategy 8

their capital to total at-risk assets when coefficient them against credit risks

should reach a minimum of V-day by the top of 1999. whereas Bale reform

continues to travel through completely different stages, it is a reality that it will

achieve a good capital demand for banks of all nations. economic process refers

to the unification and integration of world markets for each capital and cash

markets. This should be through the swaps mechanism and concomitant

arbitraging variations in international prices. This has allowed banks and

alternative monetary institutions' management to hold out their activities within

the varied financial markets throughout the globe simultaneously. International

changes forced banks and alternative establishments to compete with each other.

At an equivalent time, giant banks seemed to expand the scope of the market,

scale back costs and maximize profit through service, speed, innovation, and

meet the customer's requirements. To attain these objectives, data is a vital

consideration in production. To be competitive, banks and establishments need

conversion ways to expand geographically and open new markets and, therefore,

the challenge of competitors.

Through a review of the significant vital international and local changes

and their impact on banks, we can say that the foremost vital challenges facing

banks nowadays are the risks associated with the amendment in product
Global Business Environment Strategy 9

combined with multiplied competition and getting the resources required,

particularly human resources, for the new roles and needs of the appliance of

banking legislation. The identification of the banking strategy within which the

BankBank ought to seek sectors within which there is a comparative advantage.

What advantages might develop that will become relative presently should be

known by the BankBank. The bank should endlessly expand the merchandise

combination and banking services so they may become integrated and

convenient to customers instead of relying on ancient financial services to attain

profit margins and effectively manage their prices. There has to be a

restructuring of community banks. Considering the speedy development of

technology, thus management will approach the degree of marketing, and that

specializing in the promotion of banking services is a challenge in the long run.

Banks additionally have to be compelled to manage risks in disposition

operations to fulfill the fast changes in positions of debtors, stressing the

importance of policies for managing assets and liabilities. Community banks

additionally have to be compelled to work to develop human resources through

rehabilitation and coaching in such some way to work with the developmental

process and, therefore, the needs of contemporary banking technology. There has

to be the implementation of contemporary banking technology and, therefore, the

Global Business Environment Strategy 10

introduction of a new style of services and products to deliver those services to

purchasers within the native market.

Increased globalization and, therefore, the integration of economic

markets lead to much economic dissemination of knowledge and advances in

banking technology; it would be expected to seek out multiplied growth in

industrial banks. Moreover, someone would expect giant banks to progress

technologically quite their smaller counterparts since they are in an exceedingly

higher position to require advantage of international exchanges of the latest

technologies and rising innovations. Giant banks are found to be considerably a

lot of economical than little banks.

Information technology (I.T.) creates new opportunities for banks within

the method they organize the development of products, delivery, and marketing.

It also permits different financial and non-financial organizations to start o firing

bank services. Liberation within countries and across national boundaries permits

enhanced international competition between banks and financial and non-

financial organizations. Banking markets are changing more internationally. The

mix of recent I.T., liberation, and globalization ensures that the typical barriers to

entry within the banking system are weakened. This may be seen in the

internationalization of retail financial services (including banking), notably

Global Business Environment Strategy 11

across Europe and the United States. Will increase in the competitive forces in

banking has led to a decline of ancient banking, indicated by a discount in banks'

profitability. The initial proof of this is often the reduction in financial gain from

disposition activities as a share of total financial gain. This decline in ancient

banking has led some to question the long viability of retail banks. The decrease

in the profitableness of traditional banking is attributed to a variety of things,

magnified competition, poorly activity loans, and high-value bases.

A high-value base is reduced over time. However, the extent of

competition is unlikely to diminish. Globalization and data technology are

creating a different unstable banking atmosphere during which new entrants and

bank services are reducing banks' regular financial gain streams. The cumulative

unification of financial markets and the capability to link to the market has

created opportunities for establishments to automatically pass specific risk

components to the capital and cash markets at the lowest cost. The banks with

the power to produce automated links to their clients will serve a world customer

base of financial establishments in an exceedingly timely fashion while not

facing capability restraints. The establishments willing to link along risk takers

will unlock capital to speculate in areas where they believe they need strength.
Global Business Environment Strategy 12

The ability to show customer access electronically reduces the barriers to

new markets. Linking electronically to existing establishments serving a market

provides the chance to sell branded financial products through established

distribution channels. The community banks serving an oversized portion of an

area market have to be compelled to confirm that elements of the worth chain

have the potential to be developed into globally competitive businesses. By

partnering with different establishments to scale back the elements that need

investment and specialize in areas of strength, the community bank will still

improve the capabilities and services provided to its current client base and scale

back the particular value of supporting those services. "The banks that still

operate a vertically integrated structure centered on cutting the prices of every

specific method by merging with similar organizations or improved method

management are at risk of being unable to reply to the development within the

monetary services offered by establishments centered on specific international

market segments" (Holland). Suppose the present community bank fails to

acknowledge a discount in market share on an exceedingly timely basis. In that

case, they are unlikely to be able to react in time to recoup their position.

Banking globalization in the U.S. influences the financial mechanism

domestically and in foreign markets. The choice reports for all U.S.A. banks that
Global Business Environment Strategy 13

filed between 1980 and 2006 show that globalized banking trigger internal capital

markets within their foreign associates to insulate partly from changes in

domestic liquidity conditions. The being of these internal capital markets straight

contributes to liquidity shocks caused by lending related to banks abroad. While

these results are simply an additional active disposition station, they suggest that

the disposition channel within the U.S. is lessening in strength as banking

becomes extra globalized and monetary broadcast abroad is enlarged in strength.

In progressively globalized financial marketplaces, banks with very vita

operations in foreign nations account for the share of total U.S. banking assets. It

is not clear, but the tactic of banking globalization has to be compelled to

consume a bearing on financial policy (Rogoff, Kenneth S., 2006) . An argument

is that banks with global actions will admit to a domestic liquidity shock by

transferring and moving funds between the highest geographical point and

foreign associates. This argument presumes that banking organizations actively

operate their internal capital markets and that world banks can transfer liquid

funds between domestic and foreign operations they would like. If this is often

true, the domestic disposition channel of economic policy might reduce its

effectiveness. However, the implications of fiscal policy would not disappear.

Global Business Environment Strategy 14

Suppose world banks respond to the liquidity shock through an internal

reallocation of funds (Williamson, John) . In that case, their foreign disposition

capability might be affected. So, banks' thriving world may increase the

international transmission of domestic money rule. Kashyap and Stein (2000)

showed that U.S. banks among the prime five plc. of the normal distribution are

so closed genuine by U.S. financial policy. The suggestion between bank

globalization and bank size is indisputably essential. Most world banks are

among the prime 5 % of the standard distribution. So, by this argument, when a

bank expands its operations to include foreign realms, the financial policy has

already become unimportant for its disposition. In this case, banking

globalization is unlikely to affect monetary policy effectiveness. Giant world

banks square measure insulated from financial policy (Rogoff, Kenneth S., 2006),

whereas giant banks with domestic-only operations are sensitive to changes in

U.S. monetary policy.

This can be unstated as a symptom that insulation from financial policy

derives from the worldwide nature of banks since otherwise, giant banks would

not seem to be entirely insulated by their access to external money markets.

Consequently, world banks may need a definite loan demand less dependent on

domestic economic and liquidity conditions. In times of an obtaining money

Global Business Environment Strategy 15

policy, internal funds turn out foreign operations to the highest workplace and

contrariwise with liquidity expansions. It is come-at-able that these internal flows

unit of measurement learn internal reallocations that chase higher rates of returns

of the worldwide quality portfolio and respond to changes in interest rates,

domestically and abroad, instead of internal funding wishes. Suppose internal

capital markets unit of measurement at work, the loaning activity of the foreign

offices has to be compelled to be directly filled with domestic monetary policy.

Overall, banking globalization seems to possess a freelance result on financial

policy on the way facet any impact arriving from the increase in bank size.

Access to varied sources of external funding is unquestionably critical to financial

policy insulation. However, it has been shown that banks with world operations

build essential use of internal borrowing and disposition between their head

offices and foreign offices.

It has been found that tiny banks related to massive world banks are

insulated. However, tiny banks related to massive, non-global banks exhibited

sensitivity to fiscal policy changes. At constant times, the rise in globalization

suggests that the lending channel inside the U.A is declining in strength. The

argument behind the lending channel of financial policy is that economic

conditions ought to scale back the degree of reserves commanded by installation

Global Business Environment Strategy 16

establishments. The loaning channel for financial policy arises due to a bank

facing a significant edge up the value of getting insured, reservable deposits, and,

therefore, the value of getting alternative sources of funds. A contractionary

financial policy drains reserves from the economy and reduces the number of

reservable deposits. This interprets as a discount in bank loaning activity once

banks cannot switch every greenback of deposits with alternative funds. Once

victimized, the decision report individual U.S. bank. Kashyap and Stein showed

that loan sensitively to financial conditions was satisfactory additional vital for

smaller banks within the U.S., but not for the larger banks. Larger banks

presumptively have a more significant ability to lift various sources of funds from

external capital markets.

Suppose global banks are insulated from domestic liquidity shifts because

of their size. In such a case, there should not be any abnormal activity in the

functioning of their internal capital markets between parent banks and their

foreign affiliates around changes in monetary policy. When the internal capital

market is in operation and partially used to offset domestic monetary policy

shocks, it should be expected to find an increase in the inflow of funds or a

decline in outflows of funds from foreign operations in times of tight domestic

monetary policy. This internal capital market response between the parent and
Global Business Environment Strategy 17

foreign affiliates should be reflected in a positive sum of the coefficients on the

monetary policy indicators. If monetary conditions in countries with U.S. bank

affiliates move in correspondence with U.S. monetary conditions, the incentive of

the U.S. parent bank to reallocate funds between parents and foreign affiliates

might be reduced. The logic is that banks with weaker capital positions might rely

more on internal capital markets in the event of a liquidity shock when compared

with their healthy-capitalized counterparts. When global banks operate an active

internal capital market between their domestic and foreign operations, the lending

activity of the foreign affiliates should be affected by domestic liquidity shocks.

Suppose an active internal capital market is in operation. In that case, the lending

activity of the foreign offices should depend on the liquidity of the domestic head

office. Global banks tend to have fewer liquid assets, lower capitalization, and

higher nonperforming loan shares.

Portfolios of global banks tend to be similar in terms of loan-to-asset ratios.

However, commercial and industrial loans play a more significant role in the

business base. The portfolios of large banks are consistent with lessons from

Berger (2005), where it is argued that the bank size is correlated with the

Bank'sBank's business model. Larger banks tend to lend at a greater distance,

interact with their customers at a greater distance, and have less exclusive and
Global Business Environment Strategy 18

short-lived relationships with their customers. In recent years, the flows from

affiliates to parents have substantially exceeded flows from parents to affiliates.

While total foreign lending has been rising, domestic lending is rising faster, so

foreign loans are declining as a share of total bank lending. The flows from

foreign affiliates to parents show that affiliated foreign banks have assets that

tend to be directed toward U.S. markets.

Interestingly, large but domestic-only banks seem less insulated. The size

of the constants suggests that the Economic magnitude of the effect of monetary

policy on the lending of the large, non-global banks may not be enormous as

referred to by the coefficients shown in Cetorelli (2008). It can be expected that

these referred to by Cetorelli (2008), are still institutions that, because of their

size, can access external financial markets. This shows that large global banks,

not including the largest, are insulated from monetary policy. Large, non-global

banks display a degree of lending sensitivity. Only non-global banks in the top 1

percent can be found to be wholly insulated.

Global banks can operate an internal capital market that allows them to

move resources between domestic and foreign operations depending on their

liquidity needs ( Mehdian, Seyed M., Perry, Mark J. & Rezvanian). So,

BankBank might take advantage of a higher fed funds rate that may signify a
Global Business Environment Strategy 19

higher return in the United States. The foreign operations of this BankBank may

reallocate their resources accordingly. However, if this were the case, foreign

offices would increase their position in their domestic assets on the balance sheet

through purchases of government securities or any other available means. Foreign

affiliates help ins late global banks against domestic liquidity shocks, and this

does not mean that the consequences of monetary policy are smaller than in the

absence of globalization. While some insulation occurs in U.S. domestic markets,

the transmission of U.S. monetary shocks can be magnified in foreign markets.

Since foreign lending portfolios are typically much smaller than the total

domestic loan portfolios, the impact of an outflow on the lending of foreign

offices would be much more significant than the impact of an inflow on domestic

lending.

A banking system that grows increasingly global may have enhanced

resilience and self-adjustment in times of liquidity crisis (kashyap, Anil, and

Jeremy Stein. 1995). However, it may not rule out broader international shocks,

and the BankBank may have isolated intervention by national police authorities.

"The potential for viewing foreign markets as a liquidity buffer against U.S.-

generated liquidity shocks may rely on the presumption that the cost of capital in

foreign markets does not move in step with the U.S. federal funds rate” (Cetorelli
Global Business Environment Strategy 20

pg. 24-25). It may be that those branches and subsidiaries in countries where

currencies are not pegged to the dollar will play the dominant liquidity buffer

role. The implications of the globalization consequences for the lending channel

could differ depending on whether their partners in banking contain countries that

directly tie their monetary policies to those of the United States.

Financial Globalization

The financial globalization that has occurred since the surge can see in the

mid-1980s in capital flows among industrial countries and between industrial and

developing countries. Although these capital inflows have been associated with

high growth rates in some developing countries, some developing countries also

have knowledgeable periodic collapses in growth and substantial financial crises

that have had considerable macroeconomic and social costs. As an outcome, a

debate has emerged on the effects of financial integration on developing

economies. However, this debate has been based only on limited empirical

evidence. It is true that many of these developing economies, with a high degree

of financial integration, have also experienced higher growth rates. Some general

principles can emerge from the analysis about how these countries can increase

the benefits from and control the risks of globalization. The quality of domestic

institutions shows to play a role in this.

Global Business Environment Strategy 21

A large quantity of proof suggests that the standard of the domestic

establishment strongly impacts a country's ability to draw in new foreign direct

investment and its vulnerability to crises. Though there are completely different

measures of institutional quality, there is proof of the advantages of a sturdy legal

and supervisory framework, low levels of corruption, and good company

governance. "There is an unresolved tension among having good establishments in

place before capital market easement and therefore the notion that such easement

in itself will facilitate a country import best practices and supply an impetus to

boost domestic institutions” (International money 2003). Financial globalization

and financial integration are entirely different ideas. Financial globalization could

be a concept referring to the augmented world linkages created through cross-

border money flows. Money integration refers to a country's linkage to

international capital markets. The degree of cross-border capital flows has up

considerably within the past decades.

There has not solely been a much more significant volume of flows among

industrial countries but also a surge of inflows from industrial to developing

countries. Bank borrowing and money portfolios are considerably a lot of volatile

than foreign direct investment. Though the correct classification of capital flows is
Global Business Environment Strategy 22

not simple, there is proof that implies the composition of capital flows will

influence a country's vulnerability to financial crises. The typical alphabetic

character capita financial gain for a lot of financially open and developing

economies grows more favorable than less financially open economies. Financial

globalization will facilitate developing countries to higher manage output and

consumption volatility.

The volatility of consumption relative to output ought to decrease because

the degree of monetary integration will increase. The essence of world financial

diversification is that a rustic is positioned to shift some of its financial gain risk to

world markets. However, the volatility of output growth declined within the

Nineteen Nineties, and the volatility of consumption growth augmented the rising

market economies within the Nineteen Nineties, which was the amount of the

immediate increase in money globalization.

Financial globalization does not appear to be directly related to the costs of

the crises; however, unexpected stops from different countries within the region at

intervals of the banking crises are coupled with higher prices. The value extends

over time as investment declines throughout a banking crisis that reciprocally

reduces long growth. Banks are well-suited as intermediaries to subsume

Global Business Environment Strategy 23

knowledge-related issues within the money sector. Since banks do not get to share

info, they need the incentive to pay resources on getting info that they feel they

will use in creating loans or setting rates. Banks may monitor compliance with the

conditions of a loan agreement. This enables companies to get finance at terms

they view as to be affordable. These bank activities are significantly necessary for

rising markets that do not have well-established money markets or different

sources of finance. Firms in the absence of well-developed securities markets

accept domestic banks for credit. Foreign capital could offer an alternative to the

provision of funds. However, investment is tied to domestic savings.

Bank crises have consequences on markets growing since they disturb the

flow of savings to those segments dependent on the banks (Joyce Joseph P.).

Corporations that cannot acquire short-term credit or have high borrowing costs

might fail. Therefore, the economic activity within the area would decline. In a

number of the foremost severe cases, like Mexico in 1994-95, East Asia in 1997-

98, and Argentina in 2001, the banking crisis is in the midst of a currency crisis

that might cause matters to worsen and lead to two crises. The ensuing economic

condition might take years to reverse and should never be absolutely created up.
Global Business Environment Strategy 24

An increase in the domestic credit to the non-public sector could signify a disposal

"boom," which can precede a crisis.

Domestic savers have the flexibility to withdraw their funds from the

BankBank. This provides them an incentive to watch the activities of native banks

and causes the banks to avoid risky lending that might cause the depositors to pull

out. Moreover, each saver and lenders are ready to diversify risk. Rising market

countries that avoid a crisis must regulate their banks to stop a "boom and bust"

cycle. The closing of the country's capital account will not safeguard the country

from the prevalence of a banking crisis. In truth, the other holds. A rustic must be

cautious about which kind of financial liability it uses. Debt is related to an

enhanced chance of a crisis.

Banking Globalization example in Jordan:

Hongkong and Shanghai Banking Corporation Limited, also known as

HSBC, established in 1865, is one of the top banks functioning globally. Its

operations are in 85 countries, and its head office is in the U.K. (London). This is a

real live example of banking globalization, as it has a good attendance in the

banking industry. HSBC has local and international products covering the native

people's desires, which convinces Jordanians to start dealing with it for easy access
Global Business Environment Strategy 25

in the whole world, such as during their traveling, Overseas Investment. Local

Bank started development by learning how it worked from HSBC and started their

international product to keep their existing customers instead of moving to

international BankBank and to extract new customers with a global desire.

Conclusion

To achieve total globalization, a representative currency should be

established, which can ease the entrance of foreign banks into domestic markets

that may contribute to much efficiency through high competition. n the other hand,

a currency crisis in an emerging market would exaggerate this example. Domestic

borrowers and banks that acquire funds from abroad typically borrow in a foreign

currency like the dollar to offer foreign investors some support regarding the value

of their investments. Therefore, the result of financial globalization on domestic

financial fragility is not easy. Foreign direct investment lowers the incidence of

banking crises and shortens its period.

To face international competition, industrial banks should work to

understand all details regarding the market desires but make sure that they do not

mix with the goals of their BankBank. They need to understand the character of
Global Business Environment Strategy 26

their competition additionally. Banks must be compelled to reinforce their financial

resources by increasing capital and merging with small and weak banks to create

more functional units to realize the desired reduction in costs. Banks must be

compelled to develop human resources through rehabilitation and coaching, such

as how to work with the developmental| process and the requirements of recent

banking technology. They must implement fashionable banking technology and

introduce fashionable services and products to the shoppers in the native market.

Individuals and technological systems are getting progressively interdependent. It

is one thing over internationalization and universalization.

References

 Berger, Allen, Nathan H. Miller, Mitchell A. Petersen, Raghuram G. Rajan

‘” Does Function Follow Organizational Form Evidence from the Lending

Practices of Large & Small Banks," Journal of Financial Economics, vol. 76

(May 2005), pp. 237-69. Gray, John. False Dawn: The Delusions of

Capitalism. New York: New York, 1999. Print. Pg. 62

 Hicks, Raymond. "Globalization and Central Bank Independence:

http://www.infed.org/biblio/globalization.htm
Global Business Environment Strategy 27

 Holland, Christopher P., A. G. Lockett, and Ian D. Blackman. "The Impact

of Globalization & Information Technology on the Strategy and

Profitability of the Banking Industry

 International Monetary Fund. I.M.F. -- International Monetary Fund Home

http://www.imf.org/external/pubs/nft/op/220/index.htm

 Joyce, Joseph P. "SSRN-Financial Globalization and Banking Crises in

Emerging Markets by Joseph Joyce." 2010

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 Kashyap, Anil, and Jeremy Stein. 1995."Impact of Monetary Policy on

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Effects on the Banking System Performance in Egypt (2009)

 Mehdian, Seyed M., Perry, Mark J. & Rezvanian, Rasoul, The Effect of

Globalization on Efficiency Change, Technological Progress and the

Productivity Growth of U.S. Small and Large Banks (October 12, 2007).

 Rogoff, Kenneth S., 2006. "Impact of globalization on financial policy,"

Proceedings, Federal Reserve Bank of Kansas City, pages 265-305. By

Nicola Cetorelli and Linda S. Goldberg. July 1, 2008. Web. October 10,

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Global Business Environment Strategy 28

 Williamson, John. "Globalization: The Concept, Causes, and

Consequences." Globalization: The Concept, Causes, and Consequences.

The World Bank, December 15, 1998. Web. September 10.

http://www.iie.com/publications/papers/paper.cfm?ResearchID=330