Globalization is a natural process that takes place in the world economy. It represents the gradual transformation of the entire world economy into a common, common for all countries, pool of resources, goods, knowledge, services, etc. Globalization financial markets is an integral part of this process.

Origin and development

The process of globalization of financial markets began in the last century, when the first transnational companies and corporations appeared. Initially, national monetary associations were formed, which was due to the cheapness of the Asian labor force and the intensification of investment cash flows to Asian countries. The funds were sent to the East, from where they returned in the form of goods. material assets to the west.

This process, in turn, spurred national capitals towards mutual integration in order to protect the interests of transnational companies and investments as much as possible. The globalization of financial markets has included an increase in capitalization and a significant redistribution of funds. The volume of cash flow has increased, new management portfolios have been created, and the struggle for control over capital has intensified.

The most important goal of the globalization of financial markets is the free movement of capital into the economy of any country, increasing the efficiency of investments by minimizing costs and increasing profitability. The process is still far from being completed, but many positive changes are expected in the end:

• Standardization of all investment management processes among all market participants.
• Development and adoption of tougher antimonopoly laws, agricultural and tax policies.
• Unification of macroeconomic management policy.

Ultimately, the world will move to uniform standards, the globalization of financial markets will allow control of all economic sectors, culture and even religion.

Reasons for accelerating processes

The main reason lies in the development and enlargement industrial production. First of all, this is due to the exit of a manufacturer outside its country. That is, the company is no longer focused on its own country as the main consumer of its product, and goes to the global level of meeting the needs. Assistance in this movement is provided by the standardization of the main parameters and processes, the assessment of activities, the quality of goods and other criteria takes place in monetary terms with reference to.

Another reason for the globalization of financial markets lies in the search for resources to solve world problems (poverty, technological backwardness, disarmament and demilitarization, the food problem, ecology, the use of natural resources, demography, healthcare, etc.). According to expert estimates, solution of these world problems requires annually about one trillion dollars, and this amount is constantly growing.

Naturally, every capitalist, investor or bank seeks to get the maximum profit on each of his assets, at least a profit comparable in size to other types of free capital allocation. This is another reason for the movement towards the globalization of financial markets.

The impetus for the growth of the dynamics of the unification of economies was given by the virtual economy, which is rapidly developing. Thanks to telecommunications, international banks have been able to operate around the clock, have become a single organism that instantly responds to any important changes and signals anywhere in the world.

Until recently, international capitals were represented exclusively by national entities. But from the middle of the last century, organizations began to develop (IMF, IBRD, etc.) that manage and control world flows. It can be safely assumed that the level of influence of these organizations and their total share in operations is a kind of indicator of the globalization of financial markets.

What does this mean for the global economy?

The unification and development of financial markets stimulates the creation of universal tools and procedures for internal and external banking operations. So, a universal network was created that tied together. With the strengthening of ties, international institutions have emerged, the result of which has been growing pressure on some governments. The purpose of this pressure was to reduce interference government agencies on internal development processes and liberalization of international interaction at the level of capitals.

The globalization of financial markets removes barriers between global and domestic capital, allows unlimited movement cash within the planet, exercise, borrowing, etc. Even today, the movement of international capital exceeds the real turnover by 50 times.

This is the most complex and most advanced process in terms of internationalization, which is the result of deepening financial ties between countries, liberalizing prices and investment flows, creating global transnational financial groups. In terms of growth rates, the volume of loans in the international capital market in the previous 10-15 years exceeded by 60% the volume foreign trade and 130% of the gross world product. The number of international organizations-investors is increasing. The globalization of finance is often seen as the reason for the growth of speculation and the diversion of capital from production and the creation of new jobs for speculative purposes.

The process of financial globalization is concentrated primarily in the three main centers of the world economy - the United States, Western Europe and Japan, financial speculation goes far beyond this triad. The global turnover in the currency market daily reaches 0.9-1.1 trillion. dollars. The influx of speculative capital can not only exceed the needs of a particular country, but also destabilize its position.

In fact, there are only a few examples of truly global financial transactions that were beyond the control of the countries concerned. There are only 15-20 financial markets in the world that are truly global in the sense that large transactions in bonds, stocks and currencies are carried out on an international scale in commodities and stock exchanges oh, and a wide range of universal services are also provided. London, for example, has gained a strong leading position in the world, primarily due to the financial strength and international connections of its institutions, and also as a result of the concentration of control over the commodity, currency, stock and insurance markets.

The number of global financial groups is still small, but it is growing rapidly as a result of the merger of banks, insurance companies, mortgage lending institutions, the growth of investment activity pension funds and mutual support funds. These institutions are the main lever of globalization in the financial market. The distribution of assets goes mainly through institutional investors, the number of which is constantly increasing. With the growth of their funds and the relaxation of investment restrictions, a new discipline has emerged - global portfolio management. Its task is to find the possibility of profitable investments, increase their return, optimal distribution of risks.

Of the approximately 40,000 TNCs, only a few operate in the global equity market. Inclusion in the list of foreign stock exchanges for most companies often serves to maintain prestige on the stock exchanges of their country.

The stock markets are becoming more and more closely connected, despite the differences in time zones. Communication technologies allow marketing and distribution operations to be carried out without the physical representation of firms. International communication is not new. However, many new factors have emerged that affect competition between global financial centers. In the past, these centers have been established on the basis of several markets, relying on the necessary infrastructure, including legal and reporting. Since the 80s additional factor became a communication system. As a result, new financial markets have emerged, the movement of which instantly affects each other.

At the international level, numerous attempts have been made to stabilize world finances, reduce the risks of countries, firms, and individuals. The leaders of international banks have been trying since the mid-1970s to create a global safety net through joint efforts. Within the framework of the IMF, steps are also being taken to develop a global mechanism for resolving unforeseen situations in the financial market. However, the rapid globalization of finance continues to be a major cause of the vulnerability of the global economy. The integration of financial markets increases the risk of systemic failures.

Positive aspects of globalization.

Globalization has exacerbated international competition. Competition and market expansion lead to a deepening of specialization and the international division of labor, which, in turn, stimulate the growth of production not only at the national level, but also at the world level.

Another advantage of globalization is economies of scale in production, which can potentially lead to cost reductions and lower prices, and hence sustainable economic growth.

The benefits of globalization are also related to the benefits of trade on a mutually beneficial basis that satisfies all parties, which may be individuals, firms and other organizations, countries, trade unions, and even entire continents.

Globalization can lead to productivity gains as a result of global rationalization of production and the spread of advanced technology, as well as competitive pressures for continuous innovation on a global scale.

In general, the benefits of globalization allow all partners to improve their position, having the opportunity, by increasing production, to increase the level of wages and living standards. The end result of globalization should be a general increase in world prosperity.

Negative aspects of globalization.

• * Uneven globalization, increased differentiation in the level of development between rich and poor countries, individual regions. In fact, there is a stratification of the world's population into those who can enjoy the fruits of globalization and those to whom they are not available. Centers arise where intellectual forces are concentrated and where financial capital is attracted - and, as opposed to them, criminalized areas with a low level of education and life are formed.
• * Transparency of borders, economic interdependence lead to the fact that it becomes more difficult for state structures to control political, economic, social processes within countries. It is becoming increasingly difficult for states to resist possible financial crises, information terrorism, and so on.
• * The transformation of organized crime from national to international, the emergence of problems of drug trafficking, illegal migration and "human trafficking".
• * Increasing threat from international terrorism. So, globalization leads to an increase in interdependence, to the expansion and increase in the intensity of economic, cultural, financial ties throughout the world.

The globalization of financial markets is an objective and natural process of the development of a market world economy. As a result of a significant increase in production since the middle of the 20th century and the emergence of transnational companies (TNCs), the world has moved into a new phase, the phase of globalization.

Financial markets have ceased to be national in nature, thanks to cheap labor, Asia has become a production site for the whole world. Investment funds began to migrate to the East, and from there in the form of material values ​​back to the West. The emergence of new financial flows and the globalization of financial markets have led to lobbying for the interests of TNCs around the world, hence the increase in liberalization and changes in legal norms and values.

The process of globalization of financial markets implies continued integration of national financial markets, increased capitalization, better accumulation and redistribution financial resources. The increase in financial flow entails the emergence of newer and more modern theories portfolio management, increasing innovation and competition for access to capital, the emergence of new information technologies and IT solutions. main goal globalization of financial markets is to provide financial resources with absolute freedom of movement both from the domestic market to the world market and vice versa. The globalization of markets leads to the search for the most effective business solutions, the flow of investment is directed to the local market, where productivity will be greater and costs lower. Over time, the situation on the world stage should level off, but this is a long process and we are only at the initial stage of it.

Gradually, the globalization of markets will lead to the standardization and unification of macroeconomic policy, to the universalization of the requirements of tax, antimonopoly, and agrarian policies. The standards will become uniform for the whole world in absolutely all spheres of human life and will affect even such conservative ones as religion and culture.

When it comes to the adoption and substitution of cultural values, the term “westernization” is more often used, since the greatest innovators and engines of human progress are the countries of the West, and in particular the United States. The globalization of markets is manifested in everything and has already affected every person, for example, during the lunch break we no longer go to Pelmennaya, but go to fast foods.

Gradually, the differences will be erased, and the world will come to a single image. You should not resist it, since the process of globalization is objective, but it is still worth trying to preserve at least something of your uniqueness, your zest.

Source: https://www.site/globalizatsiya-finansovykh-rynkov/ - Globalization of financial markets

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The international financial market is an integral part of the world economy. At the core economic relations on the world level lies the international division of labor. It contributes to a more rational use of the resources of the whole world, as well as to the deepening of specialization in international production.

This causes the formation of new forms of cooperation between countries, including at the financial level.

In recent decades, the world has entered a new era of political, economic and social relationships. This is primarily due to the transition in the early 90s. former socialist countries to market forms of management. These countries are gradually integrating into the world system on market conditions. The process of their complex transformation coincided with sharply intensified globalization phenomena throughout the world.

Globalization can be imagined as a process of adaptation of national (state), regional and local institutions, subjects and relations to the patterns and trends of a globally connected system. At the same time, each subject of the globalization process strives to ensure a competitive and flexible internal structure of organization and development that is stable in relation to external influences and internal shocks. The effect of the interconnection of transformational and globalization processes is largely predetermined by the mechanism of interaction between global and local connectivity networks. Globalization puts at the forefront the possibility of maintaining system manageability and balance by coordinating the dependence of individual countries on the global level of development of world processes - political, economic, financial. First of all, globalization involves the expansion of the openness of economic entities, the liberalization of markets, the formation of an economic, social, cultural and information environment adapted to external influences.

The processes of global synchronization and standardization of world development determine new relationships and specific prospects for individual countries, corporations, financial institutions to regulate mechanisms for preventing and reducing losses in the course of globalization. A global structure of independent, but globally dependent regional and local networks for the exchange of knowledge, information, technologies, qualifications and experience, the reproduction of goods and services is being formed. This process is multifaceted and controversial. On the one hand, it enhances the capabilities of a country, region, company, and even an individual through the action of global multipliers, and on the other hand, it keeps them within the local, although not the only place of implementation. Global phenomena have covered almost all aspects of human life: political, social, economic, technological, financial, etc.

The impact of globalization on international financial markets is manifested in many ways, in particular:

The share of the financial sector is much higher specific gravity sectors of real assets in GDP;

The volume of financial flows and transactions in the financial markets exceeds the volume of transactions in the non-financial sector;

Incomes from operations in financial markets occupy a significant place in the structure of corporate income in developed countries;

International lending is developing dynamically in the form of syndicated transactions involving several countries;

New financial instruments are being born that meet the increasing requirements of investors at the international level;

The volume of issue of securities placed on foreign markets is increasing;

The functions of international financial organizations are undergoing changes in connection with the adaptation of their regulatory activities to the conditions of increasing interdependence of countries.

Reasons for the increasing globalization of capital markets include:

Mobility of capital;

liberalization of international economic relations;

Widespread introduction of the latest communication and telecommunication technologies, which not only revolutionize the infrastructure of national markets, but also significantly expand the possibilities of interaction between them. Currently, international financial organizations, agencies, big banks create powerful information structures that accelerate the flow of capital, strengthen the interconnection of financial, commodity, investment, and resource markets.

Factors in the development of the international financial market include:

Financial globalization as a modern stage of internationalization of international cash flows;

Intensification of international flows of money capital and their redistribution in the world economy between economic entities of specific countries;

Deepening the international division of labor, stimulating international flows of money capital;

Liberalization of foreign economic relations;

Expansion of openness national economies;

Development of international business and expansion of the activities of TNK and TNB;

Strengthening the importance of international monetary and financial relations;

The emergence and functioning of electronic international settlement systems;

Development of offshore zones;

Functioning of international financial centers.

The international financial market as a whole and its specific elements - key indicators world economy. The international financial market broadcasts impulses economic development from one country to others. The global financial market also spreads crisis manifestations from one country to another, thereby determining the global nature of the global financial crisis.

Specific features of the international financial market:

The ever-increasing scale of ongoing operations;

Cross-border nature of transactions (lack of geographical boundaries);

Round-the-clock business activity (transactions);

Use of major world currencies;

Application of unified standards and rules;

Use of electronic communications;

Increased likelihood of a systemic crisis as a consequence of the globalization of financial transactions.

Modern trends in the development of the international financial market:

Expansion of the global financial market through internationalization and national markets as a result of the liberalization of operations carried out on them;

Integration of activities (for example, the emergence of bancassurance);

Integration of specific elements of the global financial market as a result of the use of instruments circulating simultaneously in several markets;

Emergence of new financial instruments, in particular derivatives;

Development of international financial centers;

Expansion of activities of financial institutions in offshore zones.

Offshore zones - jurisdictions (territories) with simplified procedure registration, low taxes, ensuring the confidentiality of transactions, the absence of requirements for maintaining accounting and reporting. Registration of offshore companies and banks allows business entities from developed and developing countries (banks, corporations) to avoid taxation.

The international financial market can be primary, secondary and tertiary. New issues of debt instruments are placed on the primary market. As a rule, this happens with the assistance of large investment institutions. In the secondary market, previously issued financial instruments are sold and bought. This market is formed as a result of the excess of demand from international investors over the supply of certain instruments in the primary market. Derivative financial instruments are traded on the tertiary market.

Practical tasks

Control questions

1. Define the international financial market.

2. Who is the subject and what is the object of the international financial market?

3. By what criteria can financial market participants be classified?

4. Describe the role of intermediaries in the international financial market.

5. What is the structure of the international financial market?

6. What are the features of global financial markets?

7. On what grounds are the world financial markets classified?

8. What impact does economic globalization have on global financial markets?

1. Financial market:

1) a mechanism for moving cash savings flows from households to companies investing capital in their development;

2) a market in which the redistribution of short-term free cash between various economic entities is carried out;

3) a market in which the redistribution of free cash capital and savings between various economic entities is carried out by making transactions with financial assets;

4) the sphere of economic relations that ensure the accumulation and redistribution of monetary capital between economic entities of different countries.

2. Correlate the types of financial markets with the criteria for their classification:

1) money market and capital market;

2) the market for property instruments and the market for loan instruments;

3) the market for short-term financial instruments and the market for long-term financial instruments;

4) the market for shares, bonds, bank loans;

a) by ownership of capital;

b) by the term of fulfillment of obligations;

c) by type of financial asset circulating on the market;

d) according to the purposes of redistribution.

3. According to the purpose of redistribution, financial markets are divided into:

1) the market for stock instruments and the market for loan capital;

3) the market for short-term loans and the market for long-term loans;

4) the market of bank loans and the securities market.

4. Composition money market include:

5. The composition of the capital market includes:

1) the market for short-term bank loans;

2) stock and corporate bond market;

3) the bill market and the market for short-term highly liquid and reliable government securities;

4) the market for long-term bank loans.

6. By what criteria is the financial market divided into the capital market and the money market?

1) by ownership of capital;

2) by the term of fulfillment of obligations;

3) according to the purposes of redistribution;

4) by type of financial asset circulating on the market.

7. Stock market:

1) stock market;

2) the bond market;

3) securities market;

4) the market of bank loans.

8. Loan capital market:

1) a market in which transactions are carried out to provide some economic entities with temporarily free funds on a loan to other economic entities;

2) a market in which transactions are carried out to provide some economic entities with temporarily free short-term funds to other economic entities;

3) a market in which transactions are carried out to provide some economic entities with temporarily free long-term funds to other economic entities;

4) the market in which transactions for the sale and purchase of financial assets by some economic entities from others are carried out economic entities.

9. In terms of scale, markets are:

1) closed and open;

2) permanent and irregular;

3) national, regional, world;

4) primary and secondary.

10. Which market is a part of the market of short-term bank deposits:

1) the market of long-term capitals;

2) loan capital market;

3) money market;

4) stock market.

11. Functions of the capital market:

1) formation and redistribution of capital of economic agents;

2) capital investment for development purposes;

3) conducting speculative transactions;

4) regulation of the liquidity of all market participants and the economy as a whole.

12. Capital financing:

1) a method of financing in which the borrower receives funds in exchange for shares or bonds issued by him;

2) any agreement under which an enterprise receives funds for investment in exchange for granting the right of equity participation in the ownership of this firm;

3) the conclusion of any agreement under which the enterprise receives funds for investment in exchange for an obligation to pay these funds in the future with an agreed percentage;

4) a method of direct financing, in which funds are transferred directly from the owner to the borrower without intermediaries for investment in exchange for the right to equity participation.

13. Financing based on loans:

1) the conclusion of any agreement under which the enterprise receives funds for investment in exchange for an obligation to pay these funds in the future with an agreed percentage;

2) a method of direct financing, in which funds are transferred directly from the owner to the borrower without intermediaries for investment in exchange for the right to equity participation;

3) any agreement under which an enterprise receives funds for investment in exchange for granting the right to equity participation in the ownership of this firm;

4) a method of moving funds from owners to borrowers, in which they pass through special institutions that, on different conditions, attract free cash from economic entities, and then, on their own behalf, place them in various forms in various financial assets.

14. Who is the intermediary in the financial market:

1) creditor;

2) the borrower;

3) broker;

4) issuer.

15. Financial instruments:

1) equity securities;

2) debt securities;

3) any contracts that give rise simultaneously to a financial asset of one entity and a financial liability or equity instrument of another;

4) contracts for the purchase and sale of financial assets.

16. By type of financial instrument, the following are distinguished:

1) securities markets;

2) currency markets;

3) gold markets;

4) money markets.

17. The markets for derivative financial instruments include:

1) futures market;

2) market of property titles;

3) options market;

4) the debt market.

18. The features of a derivative financial instrument include:

1) its value depends on the value of the "basic variable";

2) it reflects property relations;

3) settlements on it are carried out in the future;

4) they are not binding.

19. Separation of financial markets depending on its main participants:

1) credit, stock, insurance;

2) money market and capital market;

3) banking, insurance, pension, trust;

4) securities market, bank loans market, insurance market.

20. Select financial market participants - capital providers:

1) creditors;

2) borrowers;

3) investors;

4) issuers.

21. Select financial market participants - consumers of capital:

1) borrowers;

2) creditors;

3) investors;

4) issuers.

22. Find correspondences between the types of financial market participants:

1) issuers, borrowers;

2) institutions that perform an intermediary function between suppliers and consumers of financial capital;

3) financial market organizations serving its participants and organizing transactions;

4) creditors, investors;

a) providers of capital;

b) consumers of capital;

c) financial intermediaries;

d) infrastructure organizations.

23. Functions of financial intermediaries:

1) regulatory function;

2) brokerage (intermediary) function;

3) the function of qualitative transformation of assets;

4) speculative function.

24. Types of financial intermediaries:

1) non-deposit financial institutions;

2) depository financial institutions;

3) credit institutions;

4) microfinance organizations.

Questions for discussion (abstracts)

1. Significance of world financial centers.

2. Offshore and free economic zones.

3. Features of the development of the global financial market.

4. Problems of regulation of world financial markets.

5. The role of Russia in the international financial market.

1. Using the resources of the Internet, make a critical review of the existing classifications of the international financial market.

The basis of the globalization of world financial markets (WFM) is globalization production process, i.e., a situation where the domestic, national market of a resident enterprise has lost its paramount importance for it and the company no longer focuses on its own country and is engaged in meeting such needs and at such a level that would be typical for the whole world. In this case, a global product life cycle arises, markets and products are increasingly standardized, international criteria and assessments are increasingly used to assess market success, which are mainly financial. The process of globalization is most consistently carried out by transnational corporations (TNCs), whose number in the world as of January 1, 2000, according to UNCTAD, exceeded 63,000 and which own 700,000 branches located on all continents.

Another reason for the globalization of the MFR is the need to find financial resources to solve global problems of world development, such as overcoming poverty and underdevelopment; problems of peace, disarmament and the prevention of world nuclear war(the problem of peace and demilitarization); food; natural resources (breaking up into two separate ones: energy and raw materials); ecological; demographic; development of human potential, etc. According to available estimates, the annual costs of solving global problems amounted to at least $ 1 trillion, i.e., about 25% of the gross world product, calculated at parity in the late 90s purchasing power. When they are solved in the future, apparently, relatively favorable conditions will be created for the development of human potential in all countries and regions of our planet.

Another reason is actually financial, connected with the desire of each financial agent to receive a profit close to other agents on the same financial asset, in whatever financial institution it is placed.

The globalization of financial markets is closely linked to the emergence of the virtual economy. It is modern telecommunications that allow international financial markets to function 24 hours a day, that is, in fact, to be a single living organism.

It was previously noted that international finance is represented by many subjects. However, the process of globalization is expressed in the gradual development of organizations that increasingly control and manage the MFR. This started with the founding in 1944 of the IMF and IBRD. The number of financial transactions that these world organizations have a direct impact on, their share in the total volume of financial transactions in the world can serve as a conditional indicator of the degree of globalization of world finance.

From all this it follows that the globalization of world financial markets means their universalization, i.e., the creation of uniform procedures for the circulation of financial instruments and the standardization of financial institutions using them. For example, the concept of a universal bank has been put forward as a financial institution that would meet the requirements of the global financial system. Some researchers call the process of globalization a financial revolution that began in 1980, when the system of financial markets began to function at the global level, i.e., the defining features indicated for globalization began to appear. It was then that a global financial network arose, connecting the leading financial centers of different countries.

This network linked New York, London, Tokyo, and Zurich to special function-focused centers such as Frankfurt am Main, Luxembourg, Amsterdam, Paris, Hong Kong, the Bahamas, and the Cayman Islands. London is the leading center of the Eurocurrency. The Tokyo bond market has become more attractive due to large savings and excess capital in Japan. Zurich is also a leading market for foreign bonds, mainly due to the anonymity of foreign deposits.

The strengthening of ties between these centers has led to the widespread presence of international financial institutions, international financial integration and the rapid development of financial innovation, which, in fact, was the content of financial globalization.

The ubiquitous presence of international financial institutions means increasing pressure on the governments of individual countries, helping to reduce state intervention in the domestic market and liberalize international financial relations.

The next aspect of financial globalization is associated with international financial integration, i.e., with the removal of barriers between the domestic and world financial markets with the development of multiple links between them. Financial capital can move without restrictions from the domestic to the global financial market, and vice versa. At the same time, financial institutions Establish branches in leading financial centers to perform the functions of borrowing, lending, investing and providing other financial services.

A particularly active role in the integration of global financial flows is played by such a group of corporations as the Transnational Banks (TNB), of which there are now more than 100 in the world. Their main clients are industrial and trading TNCs.

Financial integration benefits both borrowers and lenders alike. However, both borrowers and lenders are equally exposed to risk, including market, interest rate, currency and political risks.

International financial integration poses new challenges for financial institutions and other market participants. First, it can be difficult for investors to obtain case data on activity in the international capital markets. For example, many financial transactions, such as interest rate swaps, are off-balance sheet items and are not clearly recorded through normal reporting channels.

Another problem is that the integration of financial markets has led to a simplification of the beginning of the procedure for the circulation of financial resources. financial institutions, especially for those whose activities have a significant impact on the state of the financial market, it is difficult to predict or detect destabilizing flows of funds in a timely manner in order to form a corrective strategy, as happened in the Russian financial market in August 1998.

Finally, market integration can increase the vulnerability of the financial market and complicate the problem of its control.

The third aspect of financial globalization is financial innovation, that is, the creation of new financial instruments and technologies. Financial instruments such as euro dollar certificates of deposit, zero coupon eurobonds, eurocurrency syndicated loans, currency swaps and variable interest short-term bonds have become quite popular in international financial markets. The decline in euro-currency syndicated loans after 1982, following the emerging-country debt crisis, accelerated the process of securitization, i.e., the increasing role of securities in financial markets at the expense of credit. By using this process, the borrower can reduce reliance on direct bank lending and instead issue short-term commercial paper or short-term bonds guaranteed by commercial or investment banks. These instruments may be issued and resold on the secondary market from time to time as if they were long-term securities. The euronote program is an example of such securitization.

Technological innovations have accelerated and intensified the process of globalization. In particular, communication facilities have increased the speed of international transactions and their volume. As a result, information and capital flows faster. Telecommunications is helping banks raise savings from deposit pools around the world and channel funds to borrowers on the highest returns and lowest costs. investment banks may enter into transactions in bonds and foreign currency via SWIFT. Commercial banks can send letters of credit through electronic systems payments from their headquarters to their representative offices abroad; this communication with local exporters and importers is provided through a computer.

The considered technologies are part of financial engineering, defined in the general case as a set of financial instruments, innovations and technologies designed to solve problems in the field of finance. Fintech is a broad term for financial innovations such as investment funds open type, investing only in short-term money market obligations, automatic teller machines, derivative securities, etc.

From all that has been said, it is clear that financial globalization has certain positive consequences. These undoubtedly include reducing the lack of financial resources in different regions of the world. In addition, globalization increases competition in national financial markets, which is accompanied by both a decrease in the cost of financial services and the already noted process of washing out intermediation.

However, globalization also comes with certain negative consequences. First of all, this is an increase in the instability of national financial markets, since, as a result of liberalization, they become more accessible to “hot money”, and on the other hand, financial crises that occur in large financial centers manifest themselves more strongly in other countries and regions.

Another negative consequence of financial globalization is the growing dependence of the real sector of the world economy on its monetary, financial component. This process, which began in developed countries, is actively spreading to other countries and regions. This means that the state of national economies is increasingly dependent on the state of national and world finances.

The latter circumstance is also fueled by the fact that in the context of globalization, national finances are increasingly dependent on the command of non-residents, who are increasingly present on national financial markets. Thus, the financial crisis of 1998 in Russia was largely provoked by the behavior of non-residents, frightened financial crisis in Asia.

This, in turn, means that the influence of national governments on national finances is weakening, while the influence of TNCs, international institutional investors and international speculators is increasing. In integration associations, the impact is increasing common solutions, common financial policy, as is the case in the COP. Moreover, some economists are in favor of creating a new, more powerful than the IMF, international financial organization, with much more rights and resources.

All this can lead to the fact that the benefits of financial globalization, obtained as a result of the reduction and elimination of barriers between national financial systems, will be distributed unevenly. The greatest benefits will be the developed countries, and in particular the United States, whose leadership in the processes of financial globalization, in the development of all standards and mechanisms, is undoubted. As a result, the financial systems of other countries, primarily developing and former socialist countries, and then their economies, may become heavily dependent on the US financial system. Due to such unipolarity, world finances may turn out to be much more unstable than at the beginning of their formation. In this regard, it is obvious that the process of globalization has quite objective boundaries of development, and their indicator is the state of the world economy. The problem of the boundaries of globalization should be solved on the basis of the balance of interests of national financial systems and world finance in order to develop the world economy.