Hidden Bibliographic Details
| Other authors / contributors: | Muñoz, Sònia, 1970- author.
Scuzzarella, Ryan, author.
International Monetary Fund. Monetary and Capital Markets Department, issuing body.
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| ISBN: | 1283565463
9781283565462
9781463900625
1463900627
1463900619
9781463900618
9781462309269
1462309267
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| Notes: | At head of title: Monetary and Capital Markets Department.
"August 2011."
Title from PDF title page (IMF Web site, viewed September 13, 2011).
Includes bibliographical references.
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| Summary: | When a country's banking system becomes more linked to the global banking network, does that system get more or less prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M-shaped relationship between financial stability of a country's banking sector and its interconnectedness. In particular, for banking sectors that are not very connected to the global banking network, increases in interconnectedness are associated with a reduced probability of a banking crisis. Once interconnectedness reaches a certain value, further increases in interconnectedness can increase the probability of a banking crisis. Our findings suggest that it may be beneficial for policies to support greater interlinkages for less connected banking systems, but after a certain point the advantages of increased interconnectedness become less clear.
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| Other form: | Print version: Muñoz, Sònia. Bright and the Dark Side of Cross-Border Banking Linkages. Washington : International Monetary Fund, ©2011 9781462309269
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