The driving forces of financial globalization have led to four dramatic changes in the structure of national and international capital markets.

●      First, banking systems have been under a process of disintermediation. Financial intermediation is happening more through tradable securities and not through bank loans and deposits.

●      Second, cross-border financing has increased. Investors are now trying to enhance their returns by diversifying their portfolios internationally. They are now seeking the best investment opportunities from around the world.

●      Third, the non-banking financial institutions are competing with banks in national and international markets, decreasing the prices of financial instruments. They are taking advantage of economies of scale.

●      Fourth, banks have accessed a market beyond their traditional businesses. It has enabled the banks to diversify their sources of income and the risks.