Credit risks from banking systems' claims on other countries, and funding risks from one banking system's liabilities to another, have declined over the past five years according to a new working paper from the IMF, which nevertheless argues that policy-makers should pay more attention to understanding cross-border funding risks.

In Real and Financial Vulnerabilities from Crossborder Banking Linkages, Kyunghun Kim and Srobona Mitra look at the vulnerabilities stemming from banking sector