Editorial Comment:

Abstract: This paper discusses aspects of global financial services. As part of financial globalisation, financial institutions have evolved both nationally and internationally. FDIis becoming an important vehicle for multinational banks to enter developing countries.This in turn is changing the composition of trade in financial services. The experience ofregional integration in Europe and the emergence of large multinational European bankssignal a new era of global competition and consolidation of financial institutions. Homebias in international financial services is much less where financial integration is takingplace. With financial globalisation, one should expect more diversification of ownershipof multinational banks around the world, particularly when China and India are now ableto have strategic investment in some of the key investment banks around the world.Financial globalisation requires stronger and more effective international institutions as away of monitoring the activities of multinational financial institutions at both thenational and international levels.