With the strong growth of trade and financial flows between national economies, banking problems in one country have much more potential to spread to other parts of the world. A specific form of globalisation concerns the increasing international activities of large banks. Policy makers generally welcome cross-border banking, because of the beneficial effects on the efficiency, liquidity and depth of financial markets.
There can be different views about this: fiscal adjustment can be too fast as well as too slow. In the end, the Government has opted to stick to the slower pace that had been negotiated with the Troika.