The process of globalisation has started a long time ago but the effects are still unknown for many industries. During the last decades the world has seen a variety of financial crisises which occurred in many places. Global finance means huge cross-border flows of money which can have a negative influence when things go wrong, and lead to crisis which threatens the world financial system itself.

The world has seen a lot of substantial changes during the last two decades, especially in the developing countries. These changes had led to the globalization, which started when the worldwide trend of financial opening in the 1990s has restored degree of international capital mobility not seen since this century’s beginning. In industrialized countries the elimination of restrictions on capital flows accelerated in the 1980s and the 1990s, beginning with Margaret Thatcher’s reform in the united kingdom continuing with Japan’s liberalization of capital inflows and outflows in the early of 1980s, and ending with the European community elimination of intra-community barriers to capital flows in the 1990s (on line).

Globalization means the world capitalism, and capitalism is the market plus of the corporation. For last decade on a world scene new powerful operating forces have appeared and have affirmed. The basic subjects of the international economic attitudes were the state and the businessmen who are being under their jurisdiction

With the growth of new technologies, the expanding global marketplace, people, goods and services are crossing borders at ever-increasing rates. Economic globalization, aided by the growth of new technologies, has provided new opportunities for economic growth. This has created enormous economic and social benefits to some countries, but not to others, and disproportionately to some groups within those countries. It has also reduced the regulatory authority of national and sub-national governments (the public sector) and increased the power and influence of transnational corporations (the private sector). The planet may be shrinking as far as business interests are concerned, but the gap between rich and poor within and between most nations is going in the opposite direction. This has profound implications for people in both the developed and developing world.

Economic globalization described the integration of economic activities that were once more national or regional in scale to planet-wide functioning. This is not a new phenomenon, but has been a characteristic of capitalist economic expansion for at least a century or longer. The scale of this expansion, especially in speculative finance or "hot money," is new. So it is the shift in corporate structure from a multinational corporation (one company selling its product in many countries) to a transnational corporation (one company with productive units spread throughout many countries). Economic globalization has also been accompanied by a new regime in trade and investment liberalization.

Moreover, globalization will facilitate risk diversification by banks and improve the overall performance of individual economies by improving resource allocation. On the minus side, if consolidation is taken too far, it could lead to abuse of dominant market positions and moral hazard issues, such as when institutions are considered to be too big to fail. In addition, excessive involvement in foreign markets without sufficient knowledge of local economic conditions could increase the vulnerability of individual banks.