Understanding International Bank Capital Flows During the Recent Financial Crisis

Posted: 18 Mar 2011

See all articles by Glenn Hoggarth

Glenn Hoggarth

Bank of England

Lavan Mahadeva

Bank of England - Monetary Analysis

Jeremy HBC Martin

Bank of England - International Economic Analysis Division

Date Written: September 23, 2010

Abstract

Cross-country bank lending mushroomed over the past decade. This helped to spread risks but also meant that international banks were more vulnerable than previously to shocks from abroad including from each other. Following the outbreak of the US sub-prime crisis, and especially after the collapse of Lehman Brothers, cross-border bank flows reversed dramatically. This paper is aimed at better understanding how the recent crisis propagated through the international banking system. It describes the pattern of deleveraging by international banks in reaction to their funding and capital pressures, the international spillovers and the vulnerability of the UK banking system to shocks from abroad given its global role.

Suggested Citation

Hoggarth, Glenn and Mahadeva, Lavan and Martin, Jeremy HBC, Understanding International Bank Capital Flows During the Recent Financial Crisis (September 23, 2010). Bank of England Financial Stability Paper No. 8, Available at SSRN: https://ssrn.com/abstract=1786691

Glenn Hoggarth

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Lavan Mahadeva (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Jeremy HBC Martin

Bank of England - International Economic Analysis Division ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
223
Abstract Views
965
rank
163,054
PlumX Metrics