WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 12, 2015
Globalization and its Impact on Contemporary Banking in Transition Countries
Authors: ,
Abstract: The aim of this paper is to show the influence of contemporary globalization and its elements on the performance of banks. Key factors of globalization, such as deregulation and financial liberalization led to growth in economies around the world, including countries in transition. In such an environment, a temporary economic growth is a result of the inflow of foreign capital, which attracts investors, with the aim of rapidly increasing capital. In such an environment, with the support of liberalization and deregulation, banks seeking a greater profit, grant more loans. The minimization of risk is a key factor that has feedback. Inadequate control lending escalated the collapse of the finance market, which inevitably spilled over to real sector. This mechanism of communicating vessels destroys itself. In regard to the settlement of the new situation, it is necessary to better supervision and monitoring of financial institutions, especially banks.
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Pages: 36-47
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 12, 2015, Art. #4