BIS research documents high concentration of cross-border credit
Big banks dominate global credit, which matters for global spillovers, authors say
Research by economists at the Bank for International Settlements sheds light on the high degree of concentration between global banks, with just a handful of bilateral links accounting for the bulk of cross-border credit flows.
“A small number of very large cross-border links dominate global cross-border bank credit,” write Iñaki Aldasoro and Torsten Ehlers in the quarterly review article. They find only 2.4% of bilateral cross-border links were worth more than $50 billion at the end of 2018
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