Front Matter Page
IMF Institute
Authorized for distribution by Marc Quintyn
Contents
I. Introduction
II. Related studies
III. Data and definitions
A. BIS locational statistics
B. The network
C. Network indicators
Country centrality
Network density
IV. Results
A. Network connectivity
B. Country rankings, dynamics, and regional heterogeneity
C. In-sample dynamics and out-of-sample evolution
V. The global banking network during financial crises
VI. Conclusions
References
Appendix
List of tables
Table 1. Summary statistics of network indicators
Table 2. Kolmogorov-Smirnov tests
Table 3. Country rankings by degree of interconnectedness
Table 4. Unit root tests for empirical moments of network indicators
Table 5. Empirical M-statistics
Table 6. Interconnectedness during financial crises: Regression estimates
List of figures
Figure 1. Cross-border financial flows to advanced economies
Figure 2. Cross-border financial flows to emerging markets and developing economies
Figure 3. Network view of cross-border banking, 1980 and 2007
Figure 4. Trends in network indicators, 1978–2009
Figure 5. Empirical distributions of network indicators
Figure 6. Ranking stability indices
Figure 7. Average rankings for the BRICs and emerging Europe
Figure 8. Regional heterogeneity: degree, strength, and clustering
Figure 9. Stochastic kernel density estimates
Figure 10. Ergodic distributions for node degree
Figure 11. Global banking network before and during the 2008-09 crisis
Figure 12. Network density during financial crises
Figure 13. Regional clustering for LAC and EAP regions during financial crises
Figure 14. Interconnectedness before and after financial crises
Figure 15. Interconnectedness before and after systemic banking crises (including 2007-08 episodes)
We need to spend much more time modeling and understanding the topology of linkages among agents, markets, institutions, and countries. (Caballero, 2010, pp. 92)