Global Financial Development Report 2017/18: Bankers without Borders
- WB
- Jan 2018
- The World Bank Group (WBG)
- International
Following a decade of increased globalization, international banking suffered a setback after the global financial crisis. There have been large reductions in cross-border flows, and less foreign bank entry. The trends in foreign bank entry differ across countries, however. While developed country banks retrenched, developing country banks continued to invest abroad, both through cross-border and brick and-mortar operations, leading to a more regionalized banking system with greater South–South presence. Hence, international bank lending remains an important source of finance for developing countries, although its composition has changed since the crisis, and although regulatory barriers to foreign banking increased over this period, large international banks continued to become larger. Remaining open despite rising protectionism is important for countries to continue to benefit from global flows of funds, knowledge, and opportunity...
