 Banking crises and financial integration: Insights from networks scienceJournal of International Financial Markets, Institutions and Money, 2015, vol. 34, issue C, 127-146 Abstract: This paper explores whether the level of de facto financial integration of banks in a country increases the incidence of systemic banking crises. The paper computes a measure of financial integration based on network statistics of banks participating in the global market of inter-bank syndicated loans. The network statistics used are indegree, outdegree, betweenness, clustering coefficients, authority, and hub centrality. The paper fits a count data model in the cross-section for the period 1980–2007, and finds that the level of financial integration of the average bank in a country is a robust determinant of the incidence of banking crises. While borrowing (weighted indegree) is positively associated with a higher incidence of crises, betweenness is associated with a lower incidence. That is, the more important is the average bank of a country to the global bank network, as captured by betweenness, the smaller the number of crises the country experiences. Keywords: Banking crises; Financial crises; Capital flows; International Banking; Financial Networks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:34:y:2015:i:c:p:127-146 DOI: 10.1016/j.intfin.2014.11.005 Access Statistics for this article Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely More articles in Journal of International Financial Markets, Institutions and Money from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.