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But there is little sign that cross-border bank finance has any particular significance in this.
A strong push against cross-border bank debt could leave most such borrowers stranded.
In fact, it is mainly cross-border bank lending and borrowing that have fallen.
Maybe cross-border bank finance goes hand in hand with cross-border equity finance and with FDI.
Having concluded, rightly, that cross-border bank lending is especially risky, regulators clamped down on banks' international operations.
At the end of 2001 (the latest year for which figures are available) the worldwide stock of cross-border bank loans and deposits was $9 trillion.
Cross-border bank flows expanded enormously between 2000 and 2007, with 80% of the increase coming from Europe, according to McKinsey.
Illegal cross-border bank remittances can be used to wire extra capital into China to buy raw materials or cover wages during peak periods.
IN 2005 ITALY'S UniCredit bought HVB, Germany's second-largest lender, in what at the time was the continent's biggest cross-border bank merger.
McKinsey's work shows that cross-border bank lending is far more volatile than other capital flows such as bonds, equities and direct investment.
And the practice has already been adopted within the European Union (apart from a few holdouts) for cross-border bank deposits, through the EU's savings directive (EUSD).
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