Cross-Cutting Themes in Advanced Economies with Emerging Market Banking Links

Policy Papers, November 14, 2011

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Canonical URL: Cross-Cutting Themes in Advanced Economies with Emerging Market Banking Links

Publication date: November 14, 2011
Central observation: Over the most recent decade, banks headquartered in advanced economies (AEs) have expanded into emerging markets (EMs), yielding benefits to both home and host countries while exposing significant vulnerabilities revealed by the global financial crisis.
Focus of the paper: the experiences of four medium-sized “home countries” with significant retail banking links to EMs—Austria, Belgium, the Netherlands, and Spain.

AE bank expansion into EMs delivered benefits to home and host countries, alongside vulnerabilities unmasked by the global financial crisis.
The four countries were chosen because of:
- Their banks' diverse approaches to EM expansion, including the centralization of their funding models.
- Equally diverse crisis outcomes, with fears over Eastern European exposures prompting extraordinary policy efforts to maintain bank lending.
Cross-cutting themes emphasize the interaction between banks’ business models (including funding centralization) and crisis transmission to and from EMs.

Comparative analysis across Austria, Belgium, the Netherlands, and Spain serves to:
- Illustrate how different expansion strategies into EMs can affect resilience and risk transmission.
- Provide fertile ground for drawing lessons relevant for future policymaking and supervision of cross-border banking links.

Cross-Cutting Themes in Advanced Economies with Emerging Market Banking Links, (USA: International Monetary Fund, 0) accessed 9/16/2026

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