Financial globalization has led to disparate and recurring accidents for a quarter of a century.

There have been market crises that illustrate the instability of price dynamics on the financial markets and the liquidity shortages that can be brutal. It was, for example, the 1994 mandatory crisis that spread from the United States to Europe on the debt markets. stock exchanges in 1987 and 2000-2002, real estate in several countries at the turn of the 1990s and again in 2007. These different episodes highlight sources of risk with the potential to spread across all financial systems

We have also seen banking crises that spread unsuspecting behavior towards an indefinite number of banks and which can cause panic. There were extensive banking crises in the United Kingdom in the 1970s (secondary banks), in the United States twice in the 1980s (savings banks), in the three Nordic countries (commercial banks) and especially the most serious in Japan in the 1990s. There were more one-off crises, but they hit large institutions: for example, the German bank Herstatt (1974), the Continental Illinois in the United States (1984), the BCCI, whose majority shareholders were in the Arab Emirates and whose operational center was in London (1991), Crédit Lyonnais in France (1993)

The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization, its evolution is marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. In global financial crisis revealed significant weaknesses in the financial system and some of the vulnerabilities that can result from having such an interconnected global market.

Financial globalization has led to disparate and recurring accidents for a quarter of a century.

There have been market crises that illustrate the instability of price dynamics on the financial markets and the liquidity shortages that can be brutal. It was, for example, the 1994 mandatory crisis that spread from the United States to Europe on the debt markets. stock exchanges in 1987 and 2000-2002, real estate in several countries at the turn of the 1990s and again in 2007. These different episodes highlight sources of risk with the potential to spread across all financial systems

We have also seen banking crises that spread unsuspecting behavior towards an indefinite number of banks and which can cause panic. There were extensive banking crises in the United Kingdom in the 1970s (secondary banks), in the United States twice in the 1980s (savings banks), in the three Nordic countries (commercial banks) and especially the most serious in Japan in the 1990s. There were more one-off crises, but they hit large institutions: for example, the German bank Herstatt (1974), the Continental Illinois in the United States (1984), the BCCI, whose majority shareholders were in the Arab Emirates and whose operational center was in London (1991), Crédit Lyonnais in France (1993)

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Tremendously.

Join Afef Trabelsi Mnif and J. M. Koli - globalization exposes the national financial markets to greater risks accumulation and financial instability if no protectionism tools are implied.

Economic and financial globalization: In saying that economic globalization is the main manifestation of the phenomenon, it should be noted that "the tremendous progress in communications and transport, the significant reduction in transport costs, the costs of rapid electronic communications, information networks, communications networks and computers have accelerated and facilitated economic globalization" In the sense that the technological revolution has been harnessed in the service of economic globalization, and has itself become a huge sector of the global economy. This signal seems important, because some see globalization as the communications revolution. - Definition of economic globalization: Economic globalization is defined as the deepening of exchanges between the dealers in the global economy so that the rate of participation in the international exchange and international economic relations of these levels in terms of size and weight in several areas, the most important goods and services and elements of production, so that the process of international trade , Which constitute a significant proportion of overall economic activity and are new forms of international economic relations in the global economy, are increasing in comparison to domestic economic activity. Economic globalization has led to the fusion of various national and regional economies into what has become known as a single global economy (a globalized economy). Globalization has also affected large-scale investment worldwide and the integration of global markets. Economic globalization has become one of the most prominent and important phenomena of global development at all levels, and there is a difference in defining its concept through the following definitions: the increase in trade flows, capital and information, as well as the ability of individuals to move across borders. It is known that it is a rising trend for the opening of markets, and the openness of all the countries of the world. This trend has grown, along with the movement of the Commission, to modernize and develop the structure of production in advanced market economies, to crack down central planning systems and to transform them into a market economy. There are those who define it as the integration of countries' economies, without any geographical, political or economic obstacles such as imposing tariffs on goods and services. It is considered to weaken the concept of national sovereignty. Definition of Financial Globalization Financial globalization is defined as financial liberalization and the transition to financial openness that leads to the integration and interdependence of financial markets through the deregulation of capital flows. In order to infer the financial globalization, we refer to two indicators: First: For stocks and bonds in advanced industrial countries. Second: Transactions related to investment in the stock market. Shares and Bonds. - Transactions related to commercial and financial credit, guarantees, guarantees and financial facilities. - Transactions relating to commercial banks include resident deposits and borrowings from abroad which represent an inflow, and foreign loans and deposits that represent outflows. - Foreign direct investment (FDI) transactions, which include liberalization from restrictions on inward or outbound FDI, liquidation of investment and cross-border remittances. The causes of economic globalization: The researchers identify the causes of economic globalization: Liberalization of foreign trade: the integration of developed and developing economies in a single global market open to all economic forces in the world and under the principle of free competition. After World War II, A global economic system that serves the interests of the industrialized countries in general. The Bretton Woods Conference in 1944 paved the way for the establishment of the modern world economic order. The International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD) were established (beginning with a view to addressing the effects of the Second World War) and 23 countries met in 1947, (GATT), which decided to abolish trade and customs barriers between member states. The number began to increase, and then the World Trade Organization (WTO) was established in 1995 as a legitimate council with wide scope and greater powers. Today, the organization consists of 137 countries, the most important of which is the definition of trade to reduce customs on imported goods. World trade globalization: Global trade grew significantly during the 1990s, doubling global GDP, thanks to the role played by "multinational corporations", where 90 per cent of world trade had entered liberalization, with global trade increasing By 9 per cent during 1995, while global output increased by 5 per cent. Globalization of FDI: The growth of foreign direct investment (FDI) has increased despite the increase in global trade due to the increasing role played by multinational corporations, which have promoted the globalization of technology and markets by unifying markets into a single global market and freeing them from all constraints. FDI growth during the 1990s was about 12 per cent. Factors leading to financial globalization and its development: The impact of financial liberalization: Financial liberalization has led to increased flows of funds across borders, and has led to the transfer of funds at prevailing exchange rates to the accelerated globalization of financial markets and financial globalization. Restructuring of the financial services industry: With the great changes in the financial services industry, a restructuring took place in this industry. There has been a marked and significant change in the banking business and activities, and its expansion at the local and international levels, after liberalization and deregulation, especially in the last decade of the last century. Followed by. All this has led to an increase in the profits of banks, especially with the expansion

Through exchange of currencies