David Bailey will settle in permanently as chief executive of Australian Finance Group. Bailey took on the role in March on an interim basis, replacing Brett McKeon, who has shifted into an advocacy role. Bailey joined AFG from Deloitte in 2004 as chief financial officer, shifting to chief operating officer two years ago. The shrinkage of international banking is largely confined to European banks the Bank for International Settlements said over the weekend in a preview of its annual report. Foreign claims by banks have fallen by more than pone third since the GFC, to less than 40 per cent of GDP, BIS data shows. "The shrinkage of European banks' foreign claims is better interpreted as (cyclical) deleveraging after a banking glut than as a structural deglobalisation trend<" the BIS said.