IMF Staff Papers

, Volume 56, Issue 1, pp 171–197

Understanding Banking Sector Globalization

  • Authors
  • Linda S Goldberg
Original Article

DOI: 10.1057/imfsp.2008.31

Cite this article as:
Goldberg, L. IMF Econ Rev (2009) 56: 171. doi:10.1057/imfsp.2008.31

Abstract

This article profiles the recent evolution and consequences of banking sector globalization. After presenting trends in international banking, the article overviews macroeconomic consequences of banking sector globalization, including the role of banks in the international transmission of shocks, comovements of business cycles, financial crises, and economic growth. Other consequences of banking globalization have parallels with the effects of real-side foreign direct investment, including technology transfers, productivity enhancements, and wage spillovers into the host country. Finally, the article provides arguments that banking globalizing can have important consequences for financial supervision and regulation.

Keywords

F3G2

Copyright information

© International Monetary Fund 2009