According to the McKinsey Global Institute, while the finance sector had previously seen the most globalization of all industries in the past 20 years, in 2012 global cross-border bank flows had decreased by approximately 30% from their highs in 2007. While Europe has suffered the most, the decline is being seen across the world due to banks deleveraging efforts as well as regulators from around the world “ring-fence” their banking systems to prevent bank bailouts.

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