A Network Analysis of Global Banking:1978-2009

By Javier A. Reyes, Camelia Minoiu. Social Science Research Network, 2011

357 citations recorded by the source corpus.

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.

Subfields: Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/354417bdffd9520341b44243a6009c2480e59f78

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Finance

1. G. Hale
2. Anne-Caroline Hüser
3. Eugenio Cerutti
4. Camelia Minoiu
5. Lena Tonzer
6. M. Obstfeld

In Strategy and Management

1. G. Hale
2. Lena Tonzer
3. Anne-Caroline Hüser
4. Eugenio Cerutti

Citations in the corpus

• Cross-Border Interbank Networks, Banking Risk and Contagion (2015, background): “For example, Minoiu and Reyes (2013) study characteristics of the network structure of the global banking network and find that connectivity is relatively volatile with decreasing degrees of interconnectedness during and in the aftermath of systemic banking or sovereign debt crises.”
• Financial Crises and the Composition of Cross-Border Lending (2014, background): “Recent contributions include Cerutti and Claessens (2013), Cerutti (2103), KalemliOzcan, Papaioannou and Peydro (2013), Minoiu and Reyes (2013), Cetorelli and Goldberg (2011), and Degryse, Elahi, and Penas (2010).”
• An empirical study of the Mexican banking system’s network and its implications for systemic risk (2012, neutral): “In Minoiu and Reyes (2011) the authors study the network of global banking from 1978 to 2009.”
• Bank relationships, business cycles, and financial crises (2011, background): “…over our sample 4In the existing literature, either global network is analyzed at a country level (Garratt et al., 2011; Kubelec & Sá, 2010; Minoiu & Reyes, 2011; von Peter, 2007) or bank-level network is constructed for a specific country (Cocco et al., 2009; Craig & von Peter,…”
• Too Interconnected to Fail: A Survey of the Interbank Networks Literature (2015, background): “Recent efforts have been directed for example at studying global banking from a network perspective (Garratt et al., 2014; Minoiu and Reyes, 2013) and at analyzing how international linkages in interbank markets affect the stability of interconnected banking systems (Tonzer, 2015).”