Accessibility navigation

Balkanisation of banking damages international trade and UK GDP

Ul-Haq, R. (2013) Balkanisation of banking damages international trade and UK GDP. European Financial Review.

Full text not archived in this repository.

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.


Balkanisation is a way to describe the breakdown of cross-border banking, as nervous lenders retreat in particular from the more troubled parts of the Eurozone or at least try to isolate operations within national boundaries. It is increasing at the Bank level, however the senior policy makers consider this a negative trend – Mario Draghi, president of the European Central Bank, has talked of the need to “repair this financial fragmentation” and Mark Carney, head of global regulatory body the Financial Stability Board, [and now Governor of the Bank of England] has warned that deglobalising finance will hurt growth and jobs by “reducing financial capacity and systemic resilience”. In this article I would like to examine the impact of banking balkanisation on international trade and provide some initial thoughts about remedies for excessive risk in a banking non-balkanising world.

Item Type:Article
Divisions:Henley Business School > International Business and Strategy
ID Code:45939

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation