Banking Crises, Firms and their International Affiliates in the EU

In the EU Single Market, companies operate across national borders with branches throughout Europe. This promotes competition and growth. But firm networks across Europe can help banking crises spread, finds a new study by Bertelsmann Stiftung. A banking crisis abroad would hit the UK economy by up to 30 billion euros annually through foreign firms operating in the UK – and a UK banking crisis due to Brexit would hit European economies equally hard.