There is increasing evidence that what has been commonly referred to as the Global Financial Crisis - should be renamed the North Atlantic Financial Crisis. Just because the epicentre was in the west, does not make it global. Think of the baseball World Series….
There is now 5 years of externally published data on the global bank systemic risk indicators for each of the 30 global banks classified as GSIB’s. (2013-2017).
The key trends in systemic risk indicators can be examined by grouping the banks into 5 regions (US, UK, EUR, CHI, JPN) and computing year on year variances by region. (see link)
The key points are:
Size - The North Atlantic Financial Crisis bifurcated GSIB growth - declines in the west, advances in the east
Inter-connectedness - Asian GSIB’s have become more inter-connected and important to the financial systems in which they operate
Substitutability - Asian GSIB’s are playing an increasingly important role in transactional and investment banking
Cross-jurisdictional - China and Japan GSIB’s have significantly increased international activity
The North Atlantic Financial Crisis has been a massive opportunity for Asian GSIB’s and DSIB’s.