Cross-border vulnerabilities should be taken more seriously, IMF paper says

Credit risks from banking systems' claims on other countries, and funding risks from one banking system's liabilities to another, have declined over the past five years according to a new working paper from the IMF, which nevertheless argues that policy-makers should pay more attention to understanding cross-border funding risks.

In Real and Financial Vulnerabilities from Crossborder Banking Linkages, Kyunghun Kim and Srobona Mitra look at the vulnerabilities stemming from banking sector