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BIS - Fragmentation In Global Financial Markets: Good Or Bad For Financial Stability?

Date 02/10/2019

Focus

How does financial market fragmentation relate to financial stability? Does more fragmentation always imply less financial stability? Alternatively, might there be a trade-off between the two, with more fragmentation enhancing financial stability in some cases? Taking a cross-jurisdictional perspective, this paper reviews the literature with the aim of shedding light on the issue and making suggestions for further analysis.

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