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In This Paper, We Use The Extreme Value Theory (evt) Framework To Analyze Contagion Risk Across The International Banking System. We Test For The Likelihood That An Extreme Shock Affecting A Major, Systemic U.k. Bank Would Also Affect Another Large Local Or Foreign Counterpart, And Vice-versa. Our Results Reveal Several Key Trends Among Major Global Banks: Contagion Risk Among Banks Exhibits Home Bias; Individual Banks Are Affected Differently By Idiosyncratic Shocks To Their Major Counterparts; And Banks Are Affected Differently By Common Shocks To The Real Economy Or Financial Markets. In General, Bank Soundness Appears More Susceptible To Common (macro And Market) Shocks When The Global Environment Is Turbulent; This May Have Important Implications For London As A Major Financial Services And Capital Markets Hub. Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Market Share Of Major Financial Centers; Ii. Bank Linkages Between The United Kingdom And Other Major Banking Centers; 1. United Kingdom: Growth In The Interbank Money Market; Iii. Empirical Method; A. Model; 2. Distribution Of Changes In Distance-to-default, 18-bank Sample; B. Data; C. Granger-causality; 2. United Kingdom: Pairwise Granger-causality Between The World's Largest Banking Groups (18-bank Sample); Iv. Default Risk And Contagion Results; A. Analysis; 3. Distance-to-default: Hsbc Holdings Plc 4. Changes In The Distance-to-default:5. Binomial Logit Representation Of; 6. Implied Volatilities In Global Markets; 3. Contagion Risk Among The World's Largest Banking Groups (18-bank Sample), May 30, 2000-august 2, 2006; 7. United Kingdom: 1- And 10-year; 8. United Kingdom: Nominal House; B. Robustness Tests With Sub-samples; 4. Significant Co-exceedances,; 5. Change In Significant Co-exceedances; C. Caveats; V. Conclusion; I. International Banking Activity; A.1. International Positions By Nationality Of Ownership Of Bis Reporting Banks A.2. Consolidated Foreign Claims On Select Indi