The end of the great inversion: offshore national banks and the global financial crisis

Haberly, Daniel and Wójcik, Dariusz (2020) The end of the great inversion: offshore national banks and the global financial crisis. Journal of Economic Geography, 20 (6). pp. 1263-1292. ISSN 1468-2702

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Abstract

Here we present a novel analysis of the geographic evolution of international banking since 1980, which addresses still-unanswered questions about the role of offshore centers in the global financial crisis, and the post-crisis stability of these centers. We show that post-1980 regulatory shifts prompted a “Great Inversion” of offshore banking, wherein conventional Euromarket activity was partially overshadowed by the growth of European ‘midshore’ center national banks. As a result, offshore jurisdictions 1) were likely more responsible for pre-crisis regulatory failures in a home than host regulator capacity, and 2) internalized far greater domestic fiscal risks than in previous crises.

Item Type: Article
Schools and Departments: School of Global Studies > Geography
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 15 Sep 2020 06:47
Last Modified: 18 Jan 2021 15:30
URI: http://sro.sussex.ac.uk/id/eprint/93773

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