خدمات مالی در بازار مالی یکپارچه جهانی فزاینده

This paper discusses aspects of global financial services. As part of financial globalisation, financial institutions have evolved both nationally and internationally. FDI is becoming an important vehicle for multinational banks to enter developing countries. This in turn is changing the composition of trade in financial services. The experience of regional integration in Europe and the emergence of large multinational European banks signal a new era of global competition and consolidation of financial institutions. Home bias in international financial services is much less where financial integration is taking place. With financial globalisation, one should expect more diversification of ownership of multinational banks around the world, particularly when China and India are now able to have strategic investment in some of the key investment banks around the world. Financial globalisation requires stronger and more effective international institutions as a way of monitoring the activities of multinational financial institutions at both the national and international levels.

In the 21st century, foreign direct investment (FDI) is becoming a more important way of reaching foreign customers than trade in goods and possibly services. As part of this process, the capital mobility and financial deregulation of national economies are providing the opportunity for more foreign financial institutions to enter emerging countries. At the same time, the financial products are expanding in diversity, as financial institutions expand their activities into insurance, funds management, wealth creation etc. We are also observing that where corporate governance is strong, financial institutions are more willing to invest in those countries as well as directly participate in their financial services industry. It appears that reform of national institutions is an important contributor towards the acceleration of globalisation in financial services. As financial globalisation is expanding to different parts of the world, financial institutions are taking the opportunity to expand their business into foreign countries. This is changing the nature of international financial services, as the nature of trade in financial services, as defined by Moshirian, 1994 and Moshirian, 2006 is evolving in such a way that FDI is becoming the major source of generating trade in financial services. Asia’s success in trade in goods has provided it with success in financial services too. For instance, the opening of the banking sector in China to foreigners is also opening a new market for multinational banks which can position themselves in China ready for greater activities in future decades. At the same time, learning that is taking place as a result of financial integration in Europe has opened up a new way of considering the positive contribution of financial services to efficiency and stability in other regions in the world once a few or some nations decide to form a regional trading and investment block (see Moshirian, 2007). The purpose of this paper is to discuss the evolution of global financial services by focusing on trade and FDI in financial services. We will consider home bias and the experience of the European countries in the context of the EU and its implications for other parts of the world. To this end, Section 2 discusses FDI in financial services; Section 3 discusses some issues with the emergence of mega banks in this century, Section 4 links trade in goods and trade and financial services, Section 5 discusses home bias and financial services with a focus on the EU, Section 6 discusses the Doha round of trade negotiations with a focus on financial services and Section 7 concludes.

As part of financial globalisation, financial institutions have evolved both nationally and internationally. FDI is becoming an important vehicle for multinational banks to enter developing countries. This in turn is changing the composition of trade in financial services, as similar to trade in goods, FDI in financial services is becoming more important than the actual trade. The experience of regional integration in Europe and the emergence of large multinational European banks signal a new era of global competition and consolidation of financial institutions. Home bias is much less where financial integration is taking place. Thus, one would expect more activities of financial institutions in Europe, as Asia is also becoming an important destination for them. With financial globalisation, one should expect more diversification of ownership of multinational banks around the world, particularly when China and India are now able to have strategic investment in some of the key investment banks around the world. Financial globalisation requires stronger and more effective international institutions as a way of monitoring the activities of multinational financial institutions both at the international and the national levels. A stronger BIS, backed by a world central bank could enhance the efficiency and effectiveness of financial institutions. This in turn will secure higher and sustained economic growth throughout the world.