A Network Analysis of Global Banking:1978-2009

42 Pages Posted: 13 Apr 2011

See all articles by Camelia Minoiu

Camelia Minoiu

Federal Reserve Board

Javier A. Reyes

University of Arkansas - Sam M. Walton College of Business

Date Written: April 2011

Abstract

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.

Keywords: Banking crisis, Capital flows, Cross country analysis, Emerging markets, Financial crisis, International banking

Suggested Citation

Minoiu, Camelia and Reyes, Javier A., A Network Analysis of Global Banking:1978-2009 (April 2011). IMF Working Papers, Vol. , pp. 1-41, 2011. Available at SSRN: https://ssrn.com/abstract=1808447

Camelia Minoiu (Contact Author)

Federal Reserve Board ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Javier A. Reyes

University of Arkansas - Sam M. Walton College of Business ( email )

2 East Center Street
University of Arkansas
Fayetteville, AR 72701
United States
479-575-6079 (Phone)

HOME PAGE: http://economics.uark.edu/directory.php?id=reyes

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