The global banking system has faced numerous transformations in recent decades. There is a series of changes ranging from banking regulation, to advancement in banking information technology, to the development of economies, to the openness and collaboration of global financial institutions and financial markets. However, all these changes and advancements in the global banking system have created opportunities, but challenges have 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 conducted in the local business arena are strongly influenced by activities conducted in the global system. These days the banking sector and all other business sectors have become less face to face interaction with their customers. This transformation has only become possible thanks to highly intensive and sophisticated information technology. For example, you are at home, you do not go to any bank to withdraw money or go to the store for pizza, you just order it online by providing your credit card number and the pizza will be at your doorstep. there are still some limitations with the global banking system. But the World Bank, the European Union and the European Central Bank continually try to regulate this system effectively for the betterment of the world economy. An important aspect to discuss 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 almost 66% of world trade is covered by multinational organizations. In addition to that, currency crises, in the same situation, would increase competitiveness along with greater efficiency. With domestic lending, for example, the local bank obtains funds from abroad in a commonly established currency, such as the dollar, to guarantee the creditor the value of his investment, so the impact of financial globalization on national financial fragility is not so easy to determine. The best way is foreign direct investment which shortens the lending period and reduces the chances of banking crises. So, in this competitive and highly technological global banking market, banks must understand the market needs to comply, they must ensure their objectives are achieved, they must know what their competitors are doing and how they are penetrating the market in order to survive