Resilience and fragility in global banking: Impacts on emerging economies

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IDB Working Paper Series ; No. IDB-WP-1133

Classification and Topics

• Classification: Wirtschaft ; International Lending and Debt Problems ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Transactional Relationships; Contracts and Reputation; Networks
• Subject: Syndicate loans ; Shock propagation ; Systemic banking crises ; Banks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Conesa, Marina ; Lotti, Giulia ; Powell, Andrew
• Event: Veröffentlichung
• (who): Inter-American Development Bank (IDB)
• (where): Washington, DC
• (when): 2020

Further information

• DOI: doi:10.18235/0002504
• Handle: http://hdl.handle.net/10419/234706
• Last update: 10.03.2025, 11:43 AM CET