The Evolution of International Financial Integration

The IMF has published a working paper on International Financial Integration in the Aftermath of the Global Financial Crisis. The main findings are:

  1. The rapid growth in cross border positions in relation to GDP pre-2008, has effectively come to a halt.
  2. There are weaker capital flows to and from advanced economies as cross border banking activity continues to fall.
  3. Less-financially-integrated emerging and developing economies continue to increase their share of global GDP.
  4. The retrenchment in cross-border banking activity relative to pre-2008 trends, has been offset by increasing FDI positions. This may be indicative of growing claims on and from international financial centers, where pass-through financial vehicles and shifting domiciles of multinational corporations play a major role.

Link: http://www.imf.org/en/Publications/WP/Issues/2017/05/10/International-Financial-Integration-in-the-Aftermath-of-the-Global-Financial-Crisis-44906

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The Caribbean Association of Banks, Inc. is the representative body and recognized voice for banks and other financial institutions in the Caribbean. We seek to influence policies and legislation which impact the sector by advocating on our members’ behalf and participating in the global network of similar institutions.

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