Muñoz, Sònia; Scuzzarella, Ryan; Cihák, Martin - International Monetary Fund (IMF) - 2011
When a country's banking system becomes more linked to the global banking network, does that system get more or less … prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M …-shaped relationship between financial stability of a country's banking sector and its interconnectedness. In particular, for banking …