Please enable JavaScript.
Coggle requires JavaScript to display documents.
Globalisation in Financial Services (Access and Affordability (Influenced…
Globalisation in Financial Services
Contagion
Compare the impact of financial crises in relation to
Friedman
globalisation model - GFC 2008 and Great Depression 1929
World GDP fell 5.2% in 2008-09
Access and Affordability
Influenced by technology
Islamic finance - access for muslims who previously haven't had Sharia compliant banking services - untapped market for western nations to make money)
Role of IFC providing trust structures to avoid forced heirship issues
Confidentiality and security of IFCs makes them favourable for international clients in corrupt/high risk countries
e.g. Nigeria/Russia
Role of IFC in facilitating international capital flows
Aids FDI -
India 44% of FDI came from Mauritius
Increased activity
Increased global trade due to supranational bodies & trade agreements
Greater global capital flows
Wealth generation
Lift people out of poverty due to higher paid jobs
China services industry - 51% of GDP
Technology
Key enabler
Access
Led to behavioural finance (due to access) impacting global markets - more fast thinking
Global Competition
Low Cost
Improved services
Consumer choice
Homogenised products
Global Bodies
IMF and World Bank have caused more global regulatory oversight, increasing international stability
BASEL III
FATCA and CRS
WTO - multilateral trade and financial services
Mergers and Acquisitions
High levels of M&A in 2008
key to survival and success for many financial institutions is to cultivate strategic partnerships that allow them to be competitive
India
Globalise its economy in 1991 following financial liberalisation
previously - huge fiscal deficits and investors had lost confidence
position in global economy now improved