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Fascinating chart in the BIS Quarterly Review that helps to explain how any banking crisis can go viral, infecting the entire globe:
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click for bigger graphic
Chart courtesy of BIS
Excerpt:
“This article outlines a broad framework for assessing system-wide funding risks and analysing banks’ role in the transmission of shocks across countries. It highlights the need to complement essential data on banks’ consolidated balance sheets with information that provides a geographically disaggregated picture of those balance sheets. It then discusses how far the BIS international banking statistics, which have several though not all of the desired statistical properties, can go in providing measures of system-wide funding risk.”
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Source:
Bank structure, funding risk and the transmission of shocks across countries: concepts and measurement
Ingo Fender, Patrick McGuire
BIS Quarterly Review, September 2010
http://www.bis.org/publ/qtrpdf/r_qt1009.htm
Interview with Bob Ivry of Bloomberg News, who led a reporting team on an award-winning series of articles showing the true cost to the taxpayer of the Federal bailout of Wall Street – $12.8 trillion lent, spent or guaranteed to banks at its peak.
Watch the full episode. See more Need To Know.
Source: PBS
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