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Successful international integration has underpinned most experiences of rapid growth, shared prosperity, and reduced poverty. Perhaps no sector of the economy better illustrates the potential benefits¡ªbut also the perils¡ªof deeper integration than banking. International banking contributes to faster growth through two channels. First, international banks make available much-needed capital, expertise, and new technologies, boosting the competitiveness of domestic financial systems. Second, they enable risk-sharing and diversification across borders.

But international banking is not without risks. The global financial crisis vividly demonstrated how international banks can transmit shocks across the globe. Global Financial Development Report 2017 / 2018: Bankers without Borders brings to bear new evidence on the debate on the benefits and costs of international banks, particularly for developing countries. It provides evidence-based policy guidance on a range of issues that developing countries face. Countries that are open to international banking can benefit from global flows of funds, knowledge, and opportunity, but the regulatory challenges are complex and, at times, daunting.

Global Financial Development Report 2017/2018: Bankers without Borders is the fourth in a World Bank series.  It provides a unique contribution to financial sector policy debates, building on novel data, surveys, research, and wide-ranging country experience, with emphasis on emerging markets and developing economies. The report¡¯s findings and policy recommendations are relevant for policy makers; staff of central banks, ministries of finance, and financial regulation agencies; nongovernmental organizations and donors; academics and other researchers and analysts; and members of the finance and development community. The report also tracks financial systems in more than 200 economies before and during the global financial crisis, included in the accompanying website (www.worldbank.org/financialdevelopment). The website also includes extensive datasets, research papers, and other background materials, as well as interactive features.