Map of global banking network shows climb in contagion since late 1980s
Bank of England paper uses BIS banking stats to show potential for cross-border contagion has been rising for past two decades, reaching its apogee at the time of the Lehman Brothers’ collapse
Changes in the nature of the international banking network have caused the potential for cross-border contagion to soar since the late 1980s, research published by the Bank of England on Wednesday showed.
The research paper, Mapping Systemic Risk in the International Banking Network, highlights that in the past two decades four important financial centres formed a so-called "supercluster" that was became more and more lethal in terms of their ability to transmit stress throughout the global
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