The Impact of Globalization on Financial Institutions’ Development
The Impact of Globalization on Financial Institutions’ Development

Summary/Abstract: The globalization process influences the coordination and interdependence of international financial institutions. The analysis of different publications defines globalization as the dominant trend of global development. Scientists examine contradictions and consequences of globalization with respect to global development as the process, its essence in terms of economic modernization, and different points of view on financial institutions development. Jones and Liuch analyze two waves of globalization, explore the evolution and define key role of business groups and multinationals in Argentina and Chile (Jones, Liuch, 2015). Witt outlines the problems of the evolutionary approach, which means overcoming environmental constraints via adaptation to, modification of, man-made, social constraints. The author casts new light on consumption, production, institutions, macroeconomic dynamics, and economic policy making (Witt, 2015). Oatley and Winecoff offer a fresh take on research into the interaction between system structure, the self-interest of private firms, the political institutions within which governments make policy, and the ideas that influence beliefs about appropriate policy responses (Oatley, Winecoff, 2014). Western experts consider the feasibility of implementation of the “full restoration of confidence and stability policies” of financial institutions. They believe that the current phase of global economic relations development of the world financial market could become a catalyst for economic growth in the real economy under certain conditions. The research hypothesis is to study the interdependence of globalization process and financial institutions development, and to explore the future trajectories of institutional modernization in developing countries. Scientists emphasize the quality of institutions, which provides increased confidence in financial institutions, and stimulates economic growth. The development of the domestic financial sector should be focused on the use of savings mechanisms for economic subjects. Strengthening of international financial institutions will provide further financial resources accumulation, and free access to international financial resources. The application of the principle of network interactions between economic agents within the firm, inter-organizational networks and transnational associations is a characteristic feature of functioning model of economic development. One can mention the influence of information and communication technology development in expanding and deepening global financial and production networks. Qualitative changes analysis show the existence of speculative and insurance operations resulted in changes in the role of financial institutions in the service of the real economy. Study globalization peculiarities and financial sector aim at coordinating and harmonizing the activities of international financial institutions to overcome the consequences of the financial crisis and world tension reduction. The basic tendencies defining the world development trajectories stimulate improvement of the quality of international financial institutions

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