This is what we can also see when it comes to the evolution of cross-border banking. We have seen tremendous shifts, but I do not believe that they are bringing about the end of global finance. Let’s briefly look at some facts – two trends stand out. First, while flows have been receding since 2007, their build-up since 2000 had been far too extreme.
From the 1990s to the 2000s, they more than doubled relative to GDP; if you look at the absolute numbers, cross-border capital flows rose more than five-fold between the early 2000s and 2007. By 2016, flows had returned to their levels at the turn of the millennium.