Contagion risk has grown due to cross-border investing – study

More countries now capable of triggering a wider crisis

global networks

Crises could spread from country to country through investment portfolios as well as interbank links – and the risk of this happening has risen to a new high since the financial crisis, new research shows.

The 2008 financial crisis spotlighted the importance of counterparty risk management for banks, when fear of being caught in a spreading wave of defaults drove a sudden shutdown of the interbank funding markets. But an international financial crisis could spread through investor behaviour as

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