Skip navigation
Global Finance Resets
Article

Global Finance Resets

The decline of cross-border capital flows signals a stronger global financial system


auto-generated audio
auto-generated audio

Editorial Rating

9

Qualities

  • Eye Opening
  • Overview
  • Engaging

Recommendation

Global finance changed markedly between 2008 and 2017: Under pressure from regulators, banks retrenched, and much of the pullback was from foreign markets. According to industry experts Susan Lund and Philipp Härle, the financial system consequently grew more coherent and robust. Yet a high degree of interconnectedness remains, which argues for watchfulness about the next potential risk – digital finance. getAbstract recommends this sharply focused and informative analysis to policy experts, executives and informed readers.

Take-Aways

  • The global financial arena has changed for the better since the 2008 financial crisis.
  • In the precrisis era, American, European and British financial institutions aggressively pursued international expansion, building retail and commercial banking businesses overseas and accumulating foreign assets. 
  • After 2008, banks cut back their ventures abroad in a realignment that made financial institutions more stable.

About the Authors

Susan Lund is a partner and Philipp Härle is a senior partner at McKinsey & Company.