TY  - GEN
AU  - Conesa, Marina
AU  - Lotti, Giulia
AU  - Powell, Andrew
TI  - Resilience and Fragility in Global Banking: Impacts on Emerging Economies
PY  - 2020
Y1  - 2020/07/22
DO  - 10.18235/0002504
AB  - Theory suggests both resilience and fragility in banking networks. This paper finds both, exploiting a new database of cross-border syndicated lending to developing countries from 1993 to 2017. Shocks propagate via co-lenders driven by central players, but shocks impacting fringe banks have little impact. The global financial crisis and the appearance of South-South lenders prompted a decline in network centrality, suggesting greater resilience to normal shocks. Multilateral Development Banks may play a catalytic role, but their small size limits their ability to mitigate shock propagation. The ongoing Covid-19 crisis is not a normal shock, is hitting central players and will likely provoke significant contagion.
UR  - https://doi.org/10.18235/0002504
ER  -