The international banking industry facesa challenging future, having to consolidate at a time ofheightened global financial volatility, anemic growth inadvanced countries, and shifting global growth balances.After a long period of sustained expansion and accommodatingregulatory treatment, the structure of international bankingis changing as global banks' business strategies shifttoward fast-growing emerging-market economies. The center ofgravity for international lending is shifting, with the roleof European banks shrinking and American, Japanese, andemerging-market banks filling in the space. Against thisbackdrop, the current debate on adding economic stimulus tosupport the sputtering global economic recovery shouldconsider the possible contractionary impacts of bankdeleveraging, even with global interest rates remaining athistorically low levels.