Exposure of the banking sector to the terms of economic globalization

Abstract

If the twentieth century was called the century of technology and war, the nineteenth century without doubt has been called the century of information and communication. Advanced computer technology and borderless communication have made information, from all over the world, fly in a hundredth of a second. People also move more freely than 30-40 years ago. Land borders are almost extinct on developed continents and countries. In the current conditions of the global COVID 19 pandemic situation, on-line communication in every aspect of life is very important. Currently international conferences, workshops, symposia and most of the work is done virtually. This wave of technological and social developments has given a powerful impetus to the phenomenon that has emerged since the end of the nineteenth century, globalization. Ultimately, globalization itself means setting no boundaries, communicating without limits, and seeing everything as a whole. Liberalization of markets and integration into the world economy would find these countries unprepared institutionally and morally to the great pressures that economic opening would bring. Economic globalization, like any phenomenon, has its advantages and disadvantages. This paper will further highlight the negative aspects of globalization. Its negative impact is evident in all links of financial systems. This paper will focus more on the negative impact that the liberalization of countries in the banking sector may have, as an important part of the financial system. The first part of the paper analyzes globalization, as an inevitable phenomenon of our days. In the second part of the paper, the focus is on the banking sector. First, the benefits and costs of globalization are presented, followed by a summary of the risks that usually characterize the banking sector in its activity. In the last part of the paper, there are given the relevant conclusions and suggestions.