Abstract
Research background: Recent financial crisis of 2007?2008 has influenced global banking system and led to reduction of cross-border bank lending in the EU and worldwide. Global banking network has been analysed extensively in prior or post-crisis periods, but the literature on regionalization is scarce, especially with regard to the banking sector in the EU. Moreover, in previous empirical research evaluation of banking sector regionalization using network analysis methodology has not been yet applied.
 Purpose of the article: The aim of the article is to map the EU banking network and to assess its regionalization during post-crisis period.
 Methods: the paper employs comparative literature analysis and synthesis; BIS bilateral interbank cross-border claim yearly flows matrix data and network analysis method (including network mapping, structural and comparative analysis and the data of intraregional and interregional banking network matrices) to assess the changes in regionalization of the EU banking system.
 Findings & Value added: The results of the research show that during post-crisis period both, EU 12 and EU 28, banking networks became more clustered and more decentralized; also the level of regionalization within the EU banking network increased. Such results prove that the EU banking network has undergone structural changes with respect to bilateral interbank cross-border claims. This research adds to the knowledge of regionalization processes within the EU banking network during the post-crisis period and intends to be beneficial for market participants, EU level governmental bodies and financial policy makers.
Highlights
Globalization and connectedness within the world has led to the formation of the global financial system, one of the most international and interconnected networks in the world
Findings & Value added: The results of the research show that during post-crisis period both, EU 12 and EU 28, banking networks became more clustered and more decentralized; the level of regionalization within the EU banking network increased. Such results prove that the EU banking network has undergone structural changes with respect to bilateral interbank cross-border claims
The results of the research show that during the post-crisis period both the core EU 12 and the EU 28 banking networks became more clustered and more decentralized; the level of regionalization within EU banking network increased. Such results prove that the EU banking network has undergone structural changes with respect to bilateral interbank crossborder claims
Summary
Globalization and connectedness within the world has led to the formation of the global financial system, one of the most international and interconnected networks in the world. Global banking network as a network of financial institutions, connected via cross-border positions attracted attention of many researchers. Previous research of banking networks could be classified into network structure analysis, network resilience analysis and causal network analysis (Kanno, 2015). Network structure analysis includes drawing the graph of network, calculating and analysing various network indicators like clustering coefficient, in-degree, out-degree, degree centrality, etc. Causal network analysis aims to reveal the factors which are influencing particular allocation of cross-border bank claims into certain regions over the other ones allowing to explain why particular network is structured the way it is and what influences changes in network structure over time (Caballero, 2015; Tonzer, 2015)
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