Work

Financial stability — Unfinished business

Year: 2026

Type: article

Abstract: Global financial stability is critical for sustainable economic growth. The post-global financial crisis reform program strengthened the banking system, and, despite several shocks, the global economy and financial system appear relatively resilient. But vulnerabilities persist in banks, are growing or accelerating in nonbanks, in their interconnections, in markets, including sovereign debt, and potentially in digital finance. Supply shocks, including geopolitical threats, tariffs, limits on immigration, fragmentation, uncertainty, climate-related and cybersecurity risks, can all expose those vulnerabilities. New tools will likely be needed to identify and help manage these threats. And deregulating finance in search of growth needs to balance pruning excess with resilience.

Source: Latin American Journal of Central Banking

DOI: 10.1016/j.latcb.2026.100197

Author: Richard Berner

Institution: New York University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,700