BIS Looks at Cross Border Financial Linkage and Global Interconnectedness

We have note many times here on this blog that the global financial system is now highly interconnected and that a problem anywhere in the world can lead to a problem everywhere. Apparently the Bank for International Setttlements (BIS) agrees as they have just wrapped up two major events related to this topic. Below are links to the BIS web site on this topic. After that I have pasted in the agenda for the recent conference on interconnectedness so you can see how important this issue clearly is to the BIS.

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Cross Border Financial Linkages

"Ever more extensive global financial linkages are changing in ways that have significant implications for policy. Asia-Pacific countries have experienced a particularly rapid growth in financial flows since the crisis. Against this background, the BIS's Representative Office for Asia and the Pacific and the Reserve Bank of New Zealand (RBNZ) co-hosted a conference on cross-border financial linkages with a view to fostering research on implications of these important developments. The conference marked the completion of the BIS Asian Office's research programme in this area."

The BIS Research Network Meeting on Global Interconnectdeness

Thursday 1 October
09:15-09:30	Welcoming remarks by Jaime Caruana, General Manager
09:30-10:50	Session 1:	Global liquidity
		Chair: Christian Upper "Global liquidity and external bond issuance in emerging markets and developing economies", E Feyen*, S Ghosh, K Kibuuka and S Farazi Discussant: Adrian van Rixtel "Global liquidity and drivers of cross-border bank flows", E Cerutti, S Claessens and L Ratnovski* Discussant: Bob McCauley
11:15-12:00	Keynote address by Richard Berner (US Office of Financial Research)
13:15-15:15	Session 2:	International interbank markets
		Chair: Michael Devereux "Banks interconnectivity and leverage", A Barrattieri*, L Moretti and V Quadrini Discussant: Martin Summer "Crisis transmission in the global banking network", G Hale*, T Kapan and C Minoiu Discussant: Linda Goldberg "The euro area money market network during the financial crisis: a look at cross-border fragmentation", C Hidalgo, F Heider and G Rünstler* Discussant: Iman van Lelyveld
15:45-16:30	Keynote lecture by Darrell Duffie (Stanford University)
16:30-17:50	Session 3:	Information and risk sharing in networks
		Chair: Morten Bech "A network map of information percolation", B Hagströmer and A Menkveld* Discussant: Andrei Kirilenko "Distress dispersion and systemic risk in networks", J Wang* Discussant: Tanju Yorulmazer
Friday 2 October 09:00-11:00 Session 4: International spillovers Chair: Thorsten Beck "Learning externalities in opaque asset markets: evidence from international commercial real estate", R Füss and  D Ruf* Discussant: Andreas Joseph "Comovement or safe haven? The effect of corruption on the market risk of sovereign bonds of emerging economies during financial crises", M Paserman* Discussant: Harald Hau "The bank-sovereign nexus across borders", J Breckenfelder* and B Schwaab Discussant: Jorge Cruz Lopez 11:20-13:00 Session 5: Harnessing new data sources Chair: Iman van Lelyveld "Currency networks in cross-border bank lending", S Avdjiev and E Takáts* Discussant: Cédric Tille "Passing the hot potato: how does credit risk flow in the CDS market?", S Battiston, M D'Errico, T Peltonen and  M Scheicher* Discussant: Silvia Pezzini Presentation on "Exploring supervisory data", C Georg* 14:00-15:20 Session 6: International interconnectedness Chair: Goetz von Peter "Interconnectedness of the banking sector as a vulnerability to crises", T Peltonen, M Rancan and P Sarlin* Discussant: Kartik Anand "Syndication interconnectedness and systemic risk", J Cai, A Saunders and S Steffen* Discussant: Vlad Sushko 15:20-15:50 Closing remarks by Hyun Shin, Economic Adviser and Head of Research