This Is What Global Financial Interconnectedness Looks Like

The BIS is out with a big new report on banks and sovereign debt (via Matina Stevis).

There’s a ton in there for everyone to sink their teeth into.

Our favourite chart so far is this one, showing the linkages between the banks of various countries.

Data are as at end-December 2010. The size of each circle is proportional to each bank nationality’s share of total interbank claims on all other banking systems. It is based on consolidated data, so exposures through subsidiaries are included in those of the home office. The thickness of the arrows from bank nationality A to bank nationality B is proportional to the size of the interbank claims between those two bank nationalities. Data for Belgian and German banks are on an immediate borrower basis rather than an ultimate risk basis.

banks interconnectedness

Photo: BIS

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at