A Network Analysis of Global Banking:1978-2009

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.Banking crisis;Capital flows;Emerging markets;International banking;banking, banking crises, banking statistics, contagion, financial crises, systemic risk, bank lending, systemic banking crises, banking network, financial contagion, financial crisis, debt crisis, global financial crisis, asian crisis, banking system, bank of england, bank loans, recession, prudential regulation, bank lending network, bank capitalization, financial distress, bank of international settlements, financial integration, bank capital, sovereign debt crisis, banking relationships, bank of international settlements (bis), bank exposure, banking systems, bank linkages, central banking, banking market, bank of japan, bank exposures, foreign exchange, pre-crisis, bank connectivity, bankruptcies, bank credit, severe financial crises, bank lending relationships, bank structure, bank network, crisis episodes, bank relationships