Home, sweet home? International banking after the crisis

The financial crisis dealt international banking a serious blow. This paper reviews 1) the extent to which financial markets have become global in recent years as well as the damage inflicted on cross-border linkages by the financial crisis, 2) the reasons for the internationalisation process and 3) prospects for international banking in the 'new-normal' environment. Apart from market developments, this reflects a new focus in the political and regulatory debate aimed at increasing the – mostly domestic – grip on the banking industry.