The global banking system has faced numerous transformations over the past decades. There are a series of changes ranging from banking regulation, advances in banking information technology, development of economies, openness and collaboration of global financial institutions and financial markets. Although all these changes and advancements in the global banking system have created opportunities, challenges are also increased and competitiveness is putting pressure on the global banking system. In this report, we will determine the different aspects of banking globalization and its effects on the local and global economy. Introduction: Activities carried out in the field of local affairs are strongly influenced by activities carried out in the global system. Nowadays, banking and all other business sectors have shifted to less face-to-face interactions with their customers. This transformation has only become possible thanks to very intense and sophisticated information technology. For example, you are at home, you do not go to a bank to withdraw money and you do not go to the store to buy a pizza, you simply order it online by giving your credit card number. credit and pizza will be at your door. The global banking system still has certain limitations. But the World Bank, the European Union and the European Central Bank are continually trying to effectively regulate this system for the good of the global economy. A major aspect to be discussed here is the contribution of multinational organizations in this system, according to sources, 33% of the world's production is generated by multinational organizations and multinational organizations cover almost 66% of the entire world trade. Economic effect of globalization... middle of paper ...... y increase in competitiveness. In addition to this, currency crises, in the same situation, would increase competitiveness as well as greater efficiency. Domestic borrowing, for example, local banks obtain funds from abroad in a commonly established currency, namely the dollar, to guarantee the lender the value of its investment, so the impact of financial globalization on the National financial fragility is not so easy to determine. The best solution is foreign direct investment which shortens the borrowing period and reduces the risk of banking crises. So, in this competitive and high-tech information technology global banking market, banks must understand the market needs to which they must comply, they must ensure their objectives are met, they must know what their competitors are doing and how they enter the market to survive in