A network analysis of global banking : 1978–2009

Author/Editor:

Javier A. Reyes ; Camelia Minoiu

Publication Date:

April 1, 2011

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In this paper we explore the properties of the global banking network using cross-border bank lending data for 184 countries over 1978-2009. Specifically, we analyze financial interconnectedness using network metrics of centrality, connectivity, and clustering. We document a relatively unstable global banking network, with structural breaks in network indicators identifying several waves of capital flows. Interconnectedness rankings, especially for borrowers, are relatively volatile over the period. Connectivity tends to fall during and after systemic banking crises and sovereign debt crises. The 2008-09 global financial crisis stands out as an unusually large perturbation to the cross-border banking network.

Series:

Working Paper No. 11/74

Subject:

English

Publication Date:

April 1, 2011

ISBN/ISSN:

9781455227051/1018-5941

Stock No:

WPIEA2011074

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

41

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