Opportunities and Challenges of Financial Globalization

ABSTRACT With the continuous development of globalization, the global circulation of finance has gradually become the main feature of globalization. This paper first makes a preliminary discussion on the meaning, characteristics and performance of financial globalization; then reviews the history of the development of financial globalization, and on this basis analyzes the market impact of the U.S. subprime mortgage crisis; then discusses the dividends and opportunities brought by financial globalization, and analyzes the reasons and prospects with the case of overseas expansion of Japanese financial institutions; and then analyzes the challenges of financial globalization, financial crisis, financial security, and financial challenges under the epidemic, and propose the construction of a financial safety net, scientific use of financial derivatives, and increased regulation of international lending to cope with the process of financial globalization, maintain financial stability, and thus achieve further economic and social development. Through a combination of theoretical analysis and empirical analysis, this paper aims to reveal the nature of financial globalization, explain the dividends and challenges brought about by financial globalization, and how to deal with risks. Finally, provide a theoretical basis for policymakers to take measures to prevent related financial crises. This paper concludes that in the context of financial globalization and the post-subprime mortgage crisis, people should conduct a more systematic and comprehensive review of financial stability, so as to be able to better achieve sustainable economic and social development.