Cross-border banking was supposed to bring benefits of increased competition, scale economies and diversification. In practice, however, the internationalization of banking also gave rise to the transmission of economic shocks worldwide, and allowed banks to grow very large relative to the size of some economies with concomitant risks to financial stability.This conference aims to evaluate the current state of cross-border banking following the financial crisis that started in 2007. Before the crisis, a strong trend towards more cross-border banking existed. The global crisis, however, could curb this development as a number of banks are retrenching and seem to curtail their international activities either forced or voluntarily. This conference addresses the questions how cross-border banking activities affected the global financial system, what went wrong with cross-border banking and what can be done to reach its full potential as part of an efficient global financial system. Keynote speaker: Linda Goldberg, New York Fed.