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There have been different deductions about what globalization depicts. Some related it to the scientist's perspective, economic and social-political perspective while some view globalization from the information technology aspect, but globalization under this research work or study, is viewed from the banking perspective.
On this note, there are so many definitions given to globalization by different authors or scholars. Globalization can be seen as a process of integrating economic decisions making such as consumption, investment, and savings all across the world. It is a process of creating a global market in which all nations are forced to participate.
In other words, globalization is a process of expanding economic cooperation among states and this does not necessarily imply a future breakdown of borders.
Globalization can also be defined as the integration of national economies through trade and financial transactions. It is a process that has tended to reduce the ability of microeconomic policy to achieve its objectives without due consideration of countervailing effects of competing policies adopted by other nations. The effect of globalization on Nigerian banking performance has been the outcome of several factors among which are the increase in the volume of international trade and capital flows, technological improvement in the communication and data processing, and the deregulation of the domestic market for international financial transactions. The advance in information and technology, telecommunication technology tends towards the building of strong Nigerian banking system, in order to aid its efficient and effective performance, especially with the new reform of recapitalization of twenty-five, billion naira (#25,000,000,000)
All over the globe, foreign banks have entered into countries and added another dimension to stiff domestic competition and in the process, significantly affecting the structure of domestic banking markets. This is particularly evident in the United States, central Europe, Latin America, and Asia, where foreign old banks have captured a growing share of key markets (Rose, 1999). The profiles of the foreign banks that have entered into joint ventures with Nigerian banks are intimidating. They have the capacity and potentials to restructure the banking system of any country. The strategic alliances between the Nigerian banking system and foreign banks and the increasing resources of Nigerian banks to foreign markets to raise capital funds are signs of movement towards globalization and the Nigerian banking industry. This has to a large extent aid a magnitude level of great performance in the industry and of course tending it to a greater height.
Furthermore, globalization has transformed the Nigerian banking performance in a profound way by altering the size and structure of the firms that comprise it. Major banks can now extend their branches network beyond national frontiers or built a strategic base in foreign financial centers by acquiring either local banks or subsidiary banks. The network of financial connections, among banks and other financial institutions, is now embracing the global world.
Globalization has not only transformed the Nigerian banking system and or aid it’s performance, but also has a positive impact on wholesale financial markets as evidence by blurring-off the traditional barrier between commercial banking and investment banking and asset management motivated by the boom in equity and bond market, in high yielding instruments and the wave of merger and acquisition, the Nigerian banks have expanded or introduced into the field of investment banking by engaging in security operations.
Also, globalization is simply viewed as the gradual evolution of markets and institutions such that geographical boundaries do not restrict financial transactions. Globalization of banking in any economy means that domestic banks have opportunities to engage in banking operations (accepting deposits, lending, borrowing or investing) in foreign markets. They can issue or transact in foreign financial instruments denominated in foreign currencies. Foreign banks can also perform similar functions in the domestic economy. The impetus for globalizing the financial market initially came from the deregulation of the foreign exchange and capital markets by governments of the developed countries, especially the united states, the United Kingdom and Japan. Perhaps the most celebrated of all these was the deregulation of the London stock exchange in 1986, Which made London be the most open and competitive capital market in the world (Eunamd Resnick, 2001). This was followed by the widespread Liberalization of financial markets in both developed and developing economies.
Advances in telecommunication contributed in no small measure to the emergence of global financial markets. This technological advancement, especially internet-based information technologies, gives investors around the world immediate access to the most recent news and information affecting their investments, sharply reducing information costs. Another force that drives globalization is the increasing desire of institutional investors and portfolio managers to diversify their investment portfolio behind geographical boundaries. Finance theory holds that international diversified portfolios are more efficient than domestic portfolios.
Moreover the stabilization of finance and financial risk have been attributed to an increase in the financial capability for engaging precision finance, the integration of national financial institutions and the activities of the markets they engage in, and the emergence of the global banks and the international financial conglomerate, each providing a mix of financial products and services in a broad range of market and countries. Financial and bank globalization has resulted in two distinct development in the global bank;
The traditional banking institutions have evolved into financial services of creating new accounts. Additionally, non-banks financial institutions now actively compete with banks both on an asset and liability sides of the balance sheet thereby blurring the distinctions between banks and non-banks institutions. Also, the rapid growth in the share of other earning assets in the total asset and relative growth in the off-balance sheet items has unprecedented.

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