Marina Conesa, Giulia Lotti and Andrew Powell
Theory suggest s both resilience and fragility in banking networks . This paper finds both, exploiting a new database o f cross -border syndicated lending to developing countries from 1993 to 2017. Shocks propagate via co-lenders driven by central players , but shocks impacting fringe banks have little impact. The global financial crisis and the appearance of South-South lenders prompt ed a decline in network centrality, suggesting greater resilience to normal shocks. Multilateral Development Banks may play a catalytic role, but their small size limits their ability to mitigate shock propagation. The ongoing Covid- 19 crisis is not a normal shock, is hitting central players and will likely provoke significant contagion.