The Impact Of Globalization On The Banking Sector In Bahrain

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It has been evident that globalization had its impacts on almost all aspects of life. With the introduction of the concept of globalization as early as the 1970s, the world started to be thought of as one single unified entity that is borderless. The concept has been witnessing many shifts over years. There are four major aspects that are related to the concept of globalization according to the IMF (2000). These major aspects are trade and business operations; money and movements of investment; processes of human capital movement; and dissemination of knowledge.Reviewers suggest that the financial sector has probably witnessed massive changes due to globalization. This essay shed light on the banking sector in Bahrain as one of the sectors…show more content…
The number of the retail banks reached 28 while the whole sale banks were 76. Conventional banksoutnumber Islamic banks as conventional banks are 79 banks while Islamic banks are 24 banks (CBB, 2015). To make a better understanding of the impacts of globalization on the banking sector in the kingdom of Bahrain, an analysis of the external environment of the banking sector can be carried out. PESTLE analysis constitutes a framework that includes some macroeconomic factors that enable any organization to investigate the components of the external environment of the organization. PESTLE is a strategic management instrument (CIPD, 2009). PESTLE stands for six external environmental factors which are Political, Economic, Social, Technological, Legal, and Environmental…show more content…
It is accepted that globalization is an economic phenomenon that significantly affects countries' economies as well as international economies. Numerous trade unions were introduced under globalization and many countries emerged as economic powers in the global economy. Some other powerful economic entities disappeared as a result. In Bahrain, the banking sector was apparently impacted by the global economic changes particularly by the monetary crisis that emerged due to globalization. The banking consumer behavior was impacted. Banks had to make use of tough procedures on lending, and interest rate was directly impacted. Bank performance was dramatically impacted (Hidayatand Abduh,

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