What Does the Future Hold for the International Banking System?

The international banking industry faces a challenging future, having to consolidate at a time of heightened global financial volatility, anemic growth in advanced countries, and shifting global growth balances. After a long period of sustained expansion and accommodating regulatory treatment, the structure of international banking is changing as global banks' business strategies shift toward fast-growing emerging-market economies. The center of gravity for international lending is shifting, with the role of European banks shrinking and American, Japanese, and emerging-market banks filling in the space. Against this backdrop, the current debate on adding economic stimulus to support the sputtering global economic recovery should consider the possible contractionary impacts of bank deleveraging, even with global interest rates remaining at historically low levels.

Saved in:
Bibliographic Details
Main Authors: Dailami, Mansoor, Adams-Kane, Jonathon
Language:English
en_US
Published: World Bank, Washington, DC 2012-10
Subjects:ACCESS TO CAPITAL, ACCESS TO CAPITAL MARKETS, ADVANCED COUNTRIES, ADVANCED COUNTRY, ADVANCED ECONOMIES, ASSET BASE, ASSET GROWTH, ASSET PORTFOLIOS, ASSET PRICES, ASSETS RATIO, BACKED BONDS, BALANCE SHEET, BALANCE SHEETS, BANK ACQUISITIONS, BANK BALANCE SHEET, BANK BRANCHES, BANK CREDIT, BANK DEBT, BANK FOR INTERNATIONAL SETTLEMENTS, BANK HOLDING, BANK HOLDING COMPANIES, BANK LENDING, BANK OF SPAIN, BANK POLICY, BANK SUPERVISION, BANKING ASSETS, BANKING INDUSTRY, BANKING INSTITUTIONS, BANKING REGULATION, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SECTOR STABILITY, BANKING SECTORS, BANKING SERVICES, BANKING SYSTEM, BANKING SYSTEMS, BANKING UNION, BANKS, BOND, BOND ISSUANCE, BORROWER, BORROWING, BORROWING COSTS, BUSINESS STRATEGIES, BUSINESS STRATEGY, CAPITAL ADEQUACY, CAPITAL FLOWS, CAPITAL MARKETS, CAPITALIZATION, CENTRAL BANKS, CENTRAL GOVERNMENT DEBT, COLLATERAL, COMMERCIAL BANKS, COMMODITY, CONSOLIDATION, COOPERATIVE BANKS, COSTS OF BORROWING, CREDIT INSTITUTIONS, CREDIT MARKETS, CREDIT PROVISION, CREDIT RATING, CREDIT RATINGS, CREDIT RISK, CRISIS COUNTRIES, CROSS-BORDER BANKING, DEBT, DEBT CRISIS, DEBT HOLDINGS, DEPOSIT, DEPOSITS, DERIVATIVES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING ECONOMIES, DIVESTMENT, DOMESTIC BANK, DOMESTIC BANKS, DOMESTIC CREDIT, DOMESTIC FINANCIAL MARKETS, ECONOMIC CONDITIONS, ECONOMICS, EMERGING ECONOMIES, EMERGING MARKETS, EMERGING-MARKET, EUROPEAN CENTRAL BANK, EXPOSURE, EXPOSURES, FEDERAL RESERVE, FINANCE COMPANIES, FINANCIAL COMPANIES, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL MARKET, FINANCIAL MARKET DEVELOPMENT, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICES, FINANCIAL SHOCKS, FINANCIAL STABILITY, FINANCIAL VOLATILITY, FINANCING SOURCES, FISCAL CONSOLIDATION, FISCAL DEFICIT, FOREIGN BANK, FOREIGN BANK PARTICIPATION, FOREIGN BANKS, FOREIGN DIRECT INVESTMENT, FOREIGN FINANCING, GLOBAL BANKING, GLOBAL ECONOMY, GLOBAL FINANCIAL MARKETS, GLOBAL FINANCIAL STABILITY, GLOBAL GROSS DOMESTIC PRODUCT, GOVERNMENT BONDS, GOVERNMENT BUDGETS, GOVERNMENT DEBT, GOVERNMENT DEBT SECURITIES, GOVERNMENT SECURITIES, GROSS DOMESTIC PRODUCT, HOLDINGS, HOME COUNTRY, HOME MARKET, HOUSEHOLD DEPOSITS, ID, INCOME, INCOMES, INSURANCE, INSURANCE COMPANIES, INTERBANK MARKETS, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BANK LENDING, INTERNATIONAL BANKING, INTERNATIONAL BANKS, INTERNATIONAL LENDING, INVESTMENT BANKS, INVESTMENT FINANCING, INVESTMENT MANAGEMENT, JOB CREATION, LENDING PORTFOLIOS, LIQUIDITY, LIQUIDITY PROBLEMS, LLC, LOAN, LOAN DEMAND, LOAN-TO-DEPOSIT RATIOS, LOCAL BANKS, MACROECONOMIC POLICY, MARKET CAPITALIZATION, MARKET CONDITIONS, MARKET DEVELOPMENT, MARKET ECONOMIES, MARKET SHARE, MONETARY FUND, MONETARY TRANSMISSION, MONETARY TRANSMISSION MECHANISMS, MONEY MARKET, MONEY MARKETS, NONBANKS, OWNERSHIP DATA, PENSION, PENSION FUNDS, PRIVATE DEBT, PRIVATE DEBT MARKETS, PRIVATE EQUITY, PUBLIC DEBT, PUBLIC FINANCES, REGIONAL TRADE, REGULATORY TREATMENT, RETURNS, RISK DIVERSIFICATION, SHARE OF ASSETS, SHAREHOLDER, SOVEREIGN DEBT, SOVEREIGN DEBT PROBLEMS, SOVEREIGN RISK, SUBSIDIARIES, SUBSIDIARY, TIER 1 CAPITAL, TRADE FINANCE, TRANCHES, TRANSMISSION OF MONETARY POLICY, VENTURE CAPITAL, VENTURE CAPITAL FIRMS, WHOLESALE FUNDING, WORLD ECONOMY,
Online Access:http://documents.worldbank.org/curated/en/2012/10/16875391/future-hold-international-banking-system
https://hdl.handle.net/10986/17079
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The international banking industry faces a challenging future, having to consolidate at a time of heightened global financial volatility, anemic growth in advanced countries, and shifting global growth balances. After a long period of sustained expansion and accommodating regulatory treatment, the structure of international banking is changing as global banks' business strategies shift toward fast-growing emerging-market economies. The center of gravity for international lending is shifting, with the role of European banks shrinking and American, Japanese, and emerging-market banks filling in the space. Against this backdrop, the current debate on adding economic stimulus to support the sputtering global economic recovery should consider the possible contractionary impacts of bank deleveraging, even with global interest rates remaining at historically low levels.