BIS Review 11/2009  1  The largest factor contributing to this rapid and simultaneous deterioration in world economic conditions is the progress of globalization in financial and economic activity. The widespread use and popularization of advanced technology in information and communications have supported globalization through increased speed of transactions, reductions in the interregional information gap, and a global network of transactions.
Paradoxically, one cannot deny that once financial transactions and economic activity supported by these advanced information and communications technologies decrease, this causes a sudden unwinding. With respect to financial activity, financial institutions around the world are currently utilizing these advanced information and communications technologies to carry out a large volume of cross-border financial transactions and invest in a variety of financial assets.