Forex Education

[Ataglance2]

Global monitoring with the
BIS international banking
statistics



This paper illustrates various applications of the BIS international banking statistics. We first compare
international bank flows to measures of real activity and liquidity and show that the international
banking system is becoming a more important conduit for the transfer of capital across countries. We
then use network analysis tools to construct a bird’s eye view of the structure of the international
banking market and to identify key financial hubs. Linking this information with balance of payments
statistics helps to better understand the role of banks in the financing of current account flows, for
example the recycling of petrodollars and Asian surpluses. Finally, the paper illustrates how the BIS
statistics can be used to analyse internationally active banks’ foreign exposures to credit risk and,
thus, spot vulnerabilities in the international banking market.

http://www.bis.org/publ/work244.pdf?noframes=1