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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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. 2011/074

Subject:

English

Publication Date:

April 1, 2011

ISBN/ISSN:

9781455227051/1018-5941

Stock No:

WPIEA2011074

Pages:

41

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