The euro zone crisis triggered a $70 billion collapse in cross-border lending to emerging market economies in just six months, as international banks battened down the hatches and dealt with crises on their home turfs. The massive fall is revealed in a new study from the Bank of International Settlements (BIS), which sought to explain a $1 billion contraction in international lending to 40 emerging markets in the second half of 2011. "Our findings confirm policy concerns that international banks might transmit financial shocks from advanced to emerging economies," the reports authors' said, noting that some emerging ... (full story)