{
  "title": "Cross-Cutting Themes in Economies with Large Banking Systems",
  "publication": "Policy Papers, April 16, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/cross-cutting-themes-in-economies-with-large-banking-systems-pp4437",
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  "summary": "This paper examines cross-country perspectives on economies with large banking systems relative to GDP. As such economies tend to have domestic institutions with major foreign currency cross-border activities, strong links are generated between the health of the financial system and sovereign sustai",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Purpose: Examines cross-country perspectives on economies with large banking systems relative to GDP, focusing on links between the health of the financial system and sovereign sustainability.\n- Scope: Excludes off-shore centers because their international links tend to be relatively unrelated to domestic activities.\n- Publication date: April 16, 2010.\n- Accessed date in citation: 9/18/2026.\n- Context: Highlights that such economies tend to have domestic institutions with major foreign currency cross-border activities."
    },
    {
      "heading": "Featured Case Studies",
      "content": "- Five economies analyzed: Hong Kong SAR, Iceland, Ireland, Singapore, and Switzerland.\n- Additional analytical box: Benelux region.\n- Common characteristic: These economies had large and relatively diversified international banking sectors compared to their fiscal capacity before the global financial crisis of 2007–09.\n- Empirical approach: Draws on experiences and divergent outcomes over the global financial crisis of 2007–09.\n- Engagements: Interviews with a range of private and public sector individuals during missions to Belgium, Hong Kong SAR, Ireland, Singapore, Switzerland, and the United Kingdom."
    },
    {
      "heading": "Key Findings and Analysis Themes",
      "content": "- Principal linkage: Strong links are generated between the health of the financial system and sovereign sustainability in economies with large banking systems relative to GDP.\n- Diversification versus fiscal capacity: The examined economies combined large, relatively diversified international banking sectors with limited fiscal capacity prior to the global financial crisis of 2007–09, contributing to divergent crisis experiences.\n- Cross-country perspective: Comparative analysis used to identify reasons for differing outcomes across the featured economies."
    },
    {
      "heading": "Policy-Relevant Observations",
      "content": "- Sovereign-financial nexus: Policymakers in economies with large banking systems should recognize the amplified interplay between bank health and sovereign sustainability, especially where foreign currency cross-border activities are substantial.\n- Exclusions for policy transferability: Lessons from off-shore centers are less transferable because their international linkages are relatively unrelated to domestic activities."
    },
    {
      "heading": "Additional Publication Metadata Mentioned",
      "content": "- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.\n- Related outreach: IMF Publications Newsletter provides latest economic research and insights delivered to subscribers.\n\nCross-Cutting Themes in Economies with Large Banking Systems, April 16, 2010. Accessed 9/18/2026.\n\n---\n\n Content in this bundle\n\n- Cross-Cutting Themes in Economies with Large Banking Systems; IMF Policy Paper; April 16, 2010\n  - Cross-Cutting Themes in Economies with Large Banking Systems; IMF Policy Paper; April 16, 2010 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Cross-Cutting Themes in Economies with Large Banking Systems; IMF Policy Paper; April 16, 2010 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/cross-cutting-themes-in-economies-with-large-banking-systems-pp4437"
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    "Published: April 16, 2010",
    "Series: Policy Papers",
    "Purpose: Examines cross-country perspectives on economies with large banking systems relative to GDP, focusing on links between the health of the financial system and sovereign sustainability.",
    "Scope: Excludes off-shore centers because their international links tend to be relatively unrelated to domestic activities.",
    "Publication date: April 16, 2010.",
    "Accessed date in citation: 9/18/2026.",
    "Context: Highlights that such economies tend to have domestic institutions with major foreign currency cross-border activities.",
    "Five economies analyzed: Hong Kong SAR, Iceland, Ireland, Singapore, and Switzerland.",
    "Additional analytical box: Benelux region.",
    "Common characteristic: These economies had large and relatively diversified international banking sectors compared to their fiscal capacity before the global financial crisis of 2007–09.",
    "Empirical approach: Draws on experiences and divergent outcomes over the global financial crisis of 2007–09.",
    "Engagements: Interviews with a range of private and public sector individuals during missions to Belgium, Hong Kong SAR, Ireland, Singapore, Switzerland, and the United Kingdom.",
    "Principal linkage: Strong links are generated between the health of the financial system and sovereign sustainability in economies with large banking systems relative to GDP.",
    "Diversification versus fiscal capacity: The examined economies combined large, relatively diversified international banking sectors with limited fiscal capacity prior to the global financial crisis of 2007–09, contributing to divergent crisis experiences.",
    "Cross-country perspective: Comparative analysis used to identify reasons for differing outcomes across the featured economies.",
    "Sovereign-financial nexus: Policymakers in economies with large banking systems should recognize the amplified interplay between bank health and sovereign sustainability, especially where foreign currency cross-border activities are substantial.",
    "Exclusions for policy transferability: Lessons from off-shore centers are less transferable because their international linkages are relatively unrelated to domestic activities.",
    "The IMF eLibrary offers over 25,000 IMF publications in multiple formats.",
    "Related outreach: IMF Publications Newsletter provides latest economic research and insights delivered to subscribers.",
    "**Cross-Cutting Themes in Economies with Large Banking Systems; IMF Policy Paper; April 16, 2010**"
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