The Impact of the Global Financial Crisis on Banking Globalization

October 27, 2014

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Format: Chicago

Stijn Claessens, and Neeltje van Horen. The Impact of the Global Financial Crisis on Banking Globalization, (USA: International Monetary Fund, 2014) accessed November 8, 2024

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

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.

Subject: Bank credit, Banking, Commercial banks, Cross-border banking, Emerging and frontier financial markets, Financial institutions, Financial markets, Financial services, Foreign banks, Money

Keywords: Africa, Asia and Pacific, Bank asset, Bank credit, Bank ownership, Bank presence, Banking system, Banks from emerging markets, Central and Eastern Europe, Central Asia, Commercial banks, Cross-border banking, Cross-border lending, Emerging and frontier financial markets, Financial fragmentation, Financial globalization, Foreign bank, Foreign banks, Global, Global financial crisis, Group level, Host country, Market share, OECD country, WP

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/197
Stock No:

WPIEA2014197
ISBN:

9781498301435
ISSN:

1018-5941

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