Climate risk is the negative effect of climate change on several aspects of the environment, business, and society. There are two categories of climate risks: physical risks include direct impacts due to extreme events and chronic changes due to climate modifications that have become commonplace;...

The study of financial technology applications in banking is highly relevant, as financial technologies serve as a primary driver of change in the banking sector, facilitating the development of new products, optimising operations, and expanding access to financial services. This article aimed...

This paper examines the heterogeneous effects of the ECB's monetary policies on the resilience of the German banking system between 1999 to 2022. We distinguish between the main bank types in Germany: Large Banks, Regional Banks, Sparkassen, Landesbanken and Credit Unions. We proxy bank-type...

This paper applies network analysis to examine the impact of non-bank financial institutions (NBFIs) and financial market stress on contagion risk within the interbank network. Using network-based simulations on euro area banks’ supervisory data, we find that banks’ strong capital and...

Palau’s financial system faces structural challenges that inhibit effective financial intermediation, mobilization of domestic savings, and payment system efficiency. The authorities have been striving to address these challenges through digital initiatives. While these initiatives are...

We propose a quantitative framework to track systemic risk arising from cyber vulnerabilities of the U.S. financial system. Synthesizing financial, economic, cyber, and network data that covers thousands of financial institutions and technological firms, we develop an index that tracks...

Russia's isolation from global financial markets and government programmes to support bank lending initially fuelled a wartime lending boom in Russia. With economic growth now stalled and borrowing costs rising, lending growth has slowed. This shift, in conjunction with increased public sector...

This study empirically investigates the performance of Elastic Machine Learning, an industrial, unsupervised anomaly detection tool, in the identification of fraudulent behavior in banking transactions. Using AI-generated datasets that were designed to simulate realistic banking environments,...

The study of financial technology applications in banking is highly relevant, as financial technologies serve as a primary driver of change in the banking sector, facilitating the development of new products, optimising operations, and expanding access to financial services. This article aimed...

This paper examines the rise of non-bank financial intermediaries (NBFIs) and its implications for financial stability and monetary policy transmission in the Euro Area and the United States. While the U.S. financial system has long been market-based, the Euro Area has experienced a striking...

In this paper, we analyse data from 493 listed banks across 28 countries to investigate the impact and mechanisms through which banks' derivatives holdings influence systemic risk. Our empirical results indicate that banks' derivatives holdings significantly increase systemic risk. Regarding the...

This paper focuses on the Republic of Azerbaijan's Financial Sector Assessment Program as part of Financial System Stability Assessment. Azerbaijan's economy has recovered from two downturns prompted by the collapse of global oil prices in 2015 and coronavirus disease 2019 pandemic in 2020. An...

This inaugural Financial Sector Assessment Program (FSAP) in Uzbekistan took place against the backdrop of a strong and resilient economy undergoing wide-ranging reforms. The main objectives of the authorities' strategy for developing the banking sector are to significantly increase the role of...

In Latin America, over 50% of the population has relied on loans from family members or friends, reflecting the importance of trust-based networks in response to financial exclusion. This study examines how distrust in the formal financial system influences the use of informal borrowing. Using...

Quantum computers may in the future break today's widely used encryption. This paper provides a framework to support the financial system in the transition to quantum-safe cryptographic infrastructures. It emphasises the need to start the transition today – with broad awareness and...

Between the late 1990s and mid-2000s, China's banking sector underwent a profound yet largely underappreciated transformation-arguably one of the most consequential episodes of financial restructuring in recent economic history. This paper analyzes the Chinese banking reform process through a...

This study provides a comparative analysis of European banking systems, focusing on how macroeconomic factors influence non-performing loans (NPLs) to evaluate bank credit risk from 2008 to 2022. Using the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model, the research examines both...

The Slovak Republic FSAP took place amidst an economic recovery and tighter financial conditions, despite the start of an accommodative cycle and signs of overvaluation in real estate markets. The financial system remains predominantly bank-centered, highly concentrated, with significant foreign...

India's financial system has withstood the pandemic well and has become more resilient since the 2017 FSAP. Nonbank financial institutions (NBFIs)-especially nonbank financial companies (NBFCs) providing credit with wholesale financing-and market financing have grown, making the financial system...

This paper examines the potential impact a central bank digital currency (CBDC) on banks' balance sheets. We first analyze the possible implications of the introduction of a CBDC for the banking system and the economy as a whole. Our analysis indicates that the impact of a CBDC depends on a...

The objective of this article is to present the results of an analysis of how the form of activities of EU banking groups affected their decisions to purchase non-euro area EU government bonds during the COVID-19 pandemic. The dataset consists of the portfolios of government bonds (including...

This paper investigates the effect of digital financial inclusion, creative innovations, and green finance on the stability of the national banking system in twenty-nine low-financially developed economies spanning the period 2011-2021. We demonstrate that digital financial inclusion promotion...