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Author: Mr.Eugenio M Cerutti
Publisher: International Monetary Fund
ISBN: 1484324862
Category : Business & Economics
Languages : en
Pages : 45
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Book Description
Post-crisis dynamics show a shrinkage in the overall amount of crossborder bank lending, which has been interpreted in the literature as a retreat in financial globalization. In this paper, we argue that aggregate figures are not sufficient to support such a claim in terms of the overall structure of the global banking network. Based on a systematic approach to measuring, mapping and analyzing financial interconnectedness among countries using network theory, we show that, despite the decline in aggregate lending volumes, the structure of the network has developed increased connections in some dimensions. Some parts of the network are currently more interlinked regionally than before the crisis, and less dependent on major global lenders. In this context, at a more disaggregate level, we document the characteristics of the increasing regionalization of lending flows, the different evolution of linkages through bank affiliates and direct cross-border claims, as well as the shift in the importance of key borrower and lender nodes. These changes in the banking network have important insights in terms of policy implications since they indicate that the global banking network has evolved, but it has not undergone a generalized retrenchment in financial linkages.
Author: Mr.Eugenio M Cerutti
Publisher: International Monetary Fund
ISBN: 1484324862
Category : Business & Economics
Languages : en
Pages : 45
Get Book Here
Book Description
Post-crisis dynamics show a shrinkage in the overall amount of crossborder bank lending, which has been interpreted in the literature as a retreat in financial globalization. In this paper, we argue that aggregate figures are not sufficient to support such a claim in terms of the overall structure of the global banking network. Based on a systematic approach to measuring, mapping and analyzing financial interconnectedness among countries using network theory, we show that, despite the decline in aggregate lending volumes, the structure of the network has developed increased connections in some dimensions. Some parts of the network are currently more interlinked regionally than before the crisis, and less dependent on major global lenders. In this context, at a more disaggregate level, we document the characteristics of the increasing regionalization of lending flows, the different evolution of linkages through bank affiliates and direct cross-border claims, as well as the shift in the importance of key borrower and lender nodes. These changes in the banking network have important insights in terms of policy implications since they indicate that the global banking network has evolved, but it has not undergone a generalized retrenchment in financial linkages.
Author: Mr.Stijn Claessens
Publisher: International Monetary Fund
ISBN: 1498301436
Category : Business & Economics
Languages : en
Pages : 50
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Book Description
Although cross-border bank lending has fallen sharply since the crisis, extending our bank ownership database from 1995-2009 up to 2013 shows only limited retrenchment in foreign bank presence. While banks from OECD countries reduced their foreign presence (but still represent 89% of foreign bank assets), those from emerging markets and developing countries expanded abroad and doubled their presence. Especially advanced countries hit by a systemic crisis reduced their presence abroad, with far flung and relatively small investments more likely to be sold. Poorer and slower growing countries host fewer banks today, while large investments less likely expanded. Conversely, faster host countries’ growth and closeness to potential investors meant more entry. Lending by foreign banks locally grew more than cross-border bank claims did for the same home-host country combination, and each was driven by different factors. Altogether, our evidence shows that global banking is not becoming more fragmented, but rather is going through some important structural transformations with a greater variety of players and a more regional focus.
Author: Stijn Claessens
Publisher:
ISBN:
Category : Bank loans
Languages : en
Pages : 0
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Book Description
Although cross-border bank lending has fallen sharply since the crisis, extending our bank ownership database from 1995-2009 up to 2013 shows only limited retrenchment in foreign bank presence. While banks from OECD countries reduced their foreign presence (but still represent 89% of foreign bank assets), those from emerging markets and developing countries expanded abroad and doubled their presence. Especially advanced countries hit by a systemic crisis reduced their presence abroad, with far flung and relatively small investments more likely to be sold. Poorer and slower growing countries host fewer banks today, while large investments less likely expanded. Conversely, faster host countries' growth and closeness to potential investors meant more entry. Lending by foreign banks locally grew more than cross-border bank claims did for the same home-host country combination, and each was driven by different factors. Altogether, our evidence shows that global banking is not becoming more fragmented, but rather is going through some important structural transformations with a greater variety of players and a more regional focus
Author: Galina Hale
Publisher: International Monetary Fund
ISBN: 1475551347
Category : Business & Economics
Languages : en
Pages : 38
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Book Description
We study the transmission of financial sector shocks across borders through international bank connections. For this purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global network of interbank exposures. We estimate the effect of direct (first-degree) and indirect (second-degree) exposures to countries experiencing systemic banking crises on bank profitability and loan supply. We find that direct exposures to crisis countries squeeze banks' profit margins, thereby reducing their returns. Indirect exposures to crisis countries enhance this effect, while indirect exposures to non-crisis countries mitigate it. Furthermore, crisis exposures have real effects in that they reduce banks' supply of domestic and cross-border loans. Our results, based on a large global sample, support the notion that interconnected financial systems facilitate shock transmission.
Author: Mr.Eugenio M Cerutti
Publisher: International Monetary Fund
ISBN: 1484345177
Category : Business & Economics
Languages : en
Pages : 59
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Book Description
This paper analyses the nature of the increasing regionalization process in global banking. Despite the large decline in aggregate cross-border banking lending volumes, some parts of the global banking network are currently more interlinked regionally than before the Global Financial Crisis. After developing a simple theoretical model capturing banks' internationalization decisions, our estimation shows that this regionalization trend is present even after controlling for traditional gravitational variables (e.g. distance, language, legal system, etc.), especially among lenders in EMs and non-core banking systems, such as Australia, Canada, Hong Kong, and Singapore. Moreover, this regionalization trend was present before the GFC, but it has increased since then, and it seems to be associated with regulatory variables and the opportunities created by the retrenchment of several European lenders.
Author: Peter A.G. van Bergeijk
Publisher: Edward Elgar Publishing
ISBN: 1788973461
Category : Business & Economics
Languages : en
Pages : 224
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Book Description
Deglobalization 2.0 argues that Trump and Brexit are the symptoms, and not the causes, of a long sequence of alternating phases of globalization and deglobalization driven by increasing income inequality and the retreat from the global stage by a contested hegemon. Providing rich empirical details, Peter van Bergeijk investigates similarities and differences between the Great Depression of the 1930s and the Great Recession and its aftermath of a slowdown in global trade. Providing an overview of recent findings and a discussion of contributions from several disciplines, the book investigates scenarios for the future of the economic world order and proposes possible solutions.
Author: Ferri, Giovanni
Publisher: Edward Elgar Publishing
ISBN: 1789904528
Category : Business & Economics
Languages : en
Pages : 384
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Book Description
Offering a comprehensive guide to financial shocks and crises, this book explores their increasing occurrence in current market economies, as well as their power to wrench the macroeconomy. The book discusses three critical questions: what causes financial shocks; which channels may exacerbate their impact; and what policies could help avoid them or limit their negative effect on the economy and society at large.
Author: World Bank Group
Publisher: World Bank Publications
ISBN: 1464814694
Category : Business & Economics
Languages : en
Pages : 561
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Book Description
Global growth is projected to be slightly faster in 2020 than the post-crisis low registered last year. While growth could be stronger if reduced trade tensions lead to a sustained reduction in uncertainty, the balance of risks to the outlook is to the downside. Growth in emerging market and developing economies is also expected to remain subdued, continuing a decade of disappointing outcomes. A steep and widespread productivity growth slowdown has been underway in these economies since the global financial crisis, despite the largest, fastest, and most broad-based accumulation of debt since the 1970s. In addition, many emerging market and developing economies, including low-income countries, face the challenge of phasing out price controls that impose heavy fiscal cost and dampen investment. These circumstances add urgency to the need to implement measures to rebuild macroeconomic policy space and to undertake reforms to rekindle productivity growth. These efforts need to be supplemented by policies to promote inclusive and sustainable long-term growth and accelerate poverty alleviation. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing countries, on a semiannual basis (in January and June). The January edition includes in-depth analyses of topical policy challenges faced by these economies, whereas the June edition contains shorter analytical pieces.
Author: Adrian Blundell-Wignall
Publisher: Springer
ISBN: 3319726765
Category : Business & Economics
Languages : en
Pages : 315
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Book Description
Globalisation and the governance of the international financial system have arrived at the crossroads, where either a coherent level playing field for the cross-border activities of banks and multinational enterprises is settled upon, or the risk of another crisis will build up again. This book will explore the underlying problems alongside inconsistent economic and financial trends as a guide for researchers, advanced students and professionals to think about the interconnectedness of the factors involved. Readers will gain insights drawn from recent developments in economic theory and empirical research—a toolkit to help them in their future careers in economics and finance—illustrated with an analysis of the 2008 crisis and its aftermath.
Author: Christian Hernandez
Publisher: Rowman & Littlefield
ISBN: 1793607702
Category : Political Science
Languages : en
Pages : 257
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Book Description
Globalization, the IMF, and International Banks in Argentina: The Model Economic Crisis examines the meaning of mainstream globalization and how it relates to neoliberalism as policymakers, international financiers, and the mainstream press combat populist attempts to de-globalize. Christian Hernandez chronicles the failures of mainstream globalism— and its resilience. Hernandez examines the case of Argentina as a microcosm of political, economic, and financial distress that has now spread to the United States and Europe. Specifically, it examines how the financial press narrated the globalization of Argentine banks and the Argentine Great Depression shortly thereafter. The book also analyzes over 32 years of IMF-Argentine consultations. This includes the IMF’s return under Mauricio Macri; proving globalization is not dead. Scholars of economics, Latin American studies, and political science will find this book particularly useful.
