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What Does the Future Hold for the International Banking System?

Author

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  • Dailami, Mansoor
  • Adams-Kane, Jonathon

    (World Bank)

Abstract

The international banking industry faces a challenging future, having to consolidate at a time of heightened global financial volatility, anemic growth in advanced countries, and shifting global growth balances. After a long period of sustained expansion and accommodating regulatory treatment, the structure of international banking is changing as global banksÕ business strategies shift toward fast-growing emerging-market economies. The center of gravity for international lending is shifting, with the role of European banks shrinking and American, Japanese, and emerging-market banks filling in the space. Against this backdrop, the current debate on adding economic stimulus to support the sputtering global economic recovery should consider the possible contractionary impacts of bank deleveraging, even with global interest rates remaining at historically low levels.

Suggested Citation

  • Dailami, Mansoor & Adams-Kane, Jonathon, 2012. "What Does the Future Hold for the International Banking System?," World Bank - Economic Premise, The World Bank, issue 94, pages 1-8, October.
    • Handle: RePEc:wbk:prmecp:ep94
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    References listed on IDEAS

    as
    1. Cull, Robert & Soledad Martinez Peria, Maria, 2010. "Foreign bank participation in developing countries : what do we know about the drivers and consequences of this phenomenon?," Policy Research Working Paper Series 5398, The World Bank.
    2. Dailami, Mansoor, 2012. "Looking beyond the Euro Area Sovereign Debt Crisis," World Bank - Economic Premise, The World Bank, issue 76, pages 1-9, March.
    3. Dailami, Mansoor & Kurlat, Sergio & Lim, Jamus Jerome, 2012. "Bilateral M&A activity from the Global South," The North American Journal of Economics and Finance, Elsevier, vol. 23(3), pages 345-364.
    4. Nicola Cetorelli & Linda S Goldberg, 2011. "Global Banks and International Shock Transmission: Evidence from the Crisis," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 59(1), pages 41-76, April.
    5. Mansoor Dailami, 2012. "Looking Beyond the Euro Area Sovereign Debt Crisis," World Bank Publications - Reports 10050, The World Bank Group.
    6. Naohiko Baba & Robert N McCauley & Srichander Ramaswamy, 2009. "US dollar money market funds and non-US banks," BIS Quarterly Review, Bank for International Settlements, March.
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    Cited by:

    1. Independent Evaluation Group, 2013. "Evaluation of the International Finance Corporation's Global Trade Finance Program, 2006-12," World Bank Publications - Books, The World Bank Group, number 15769.

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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • G0 - Financial Economics - - General
    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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