As a cornerstone of the modern financial safety net, the Lender of Last Resort (LOLR) is essential in mitigating liquidity crises and containing financial contagion. However, during periods of economic stability, risk-taking incentives in the banking sector may undermine its effectiveness. Using...

This Focus Note explores why this remains the case— even after significant efforts to narrow the financial inclusion gender gap—and what can be done to achieve equality in this sphere. Since closing the gap will require contextually adapted solutions, Ghana and Tanzania were selected as two...

This report, developed under the World Bank’s technical assistance program “Financial and Private Sector Development Policies for Fostering Sustainable Growth in Brazil,” examines strategies for strengthening disaster risk financing in response to floods. It provides an overview of federal...

This paper develops a functional and historical appraisal of finance. We start by proposing a taxonomy of three core, theory-driven functions of the financial system - intermediation, entrepreneurial, and accumulative - that coevolve throughout the history of capitalism. We build an empirical...

This paper examines how digital financial platform engagement influences financial inclusion in the Philippines and explores how financial institutions are deploying artificial intelligence (AI) in enhancing these platforms. It combines nationally representative data from the World Bank Global...

This paper revisits the "too much finance" hypothesis by reassessing the relationship between financial depth and economic growth using an expanded dataset (1960-2019) and a systematic estimation strategy that avoids reliance on any single, potentially arbitrary sample window. We estimate both...

The Seoul Center for Finance and Innovation (SCFI) Trust Fund, established in collaboration with the Ministry of Economy and Finance of the Republic of Korea, aims to support financial sector stability, resilience, and private sector–led growth and innovation in the East Asia and Pacific...

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...

Economic benefits of financial inclusion, meaning a broadening access of the population to financial services, have been studied extensively, but less is known about its potential effects on financial stability. We explore the complementarity between credit booms and episodes of rapid expansion...

The rise of fintech lenders has intensified competition in the banking industry. This study utilizes Brazilian bank-level data to examine the causal impact of increased competition on commercial banks’ lending rates and profitability. Employing a bank-specific Bartik exposure, constructed from...

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...

This study examines the role of financial infrastructure in shaping child health outcomes in rural India, with a particular focus on whether access to rural banking mitigates the adverse effects of agricultural income shocks. Using data from the National Family and Health Surveys (NFHS), I...

Firms differ in the extent to which they get access to formal and informal credit sources in developing economies. In developing economies, banks ration credit due to higher perceived borrower risk, information asymmetry, lack of collateral, and market inefficiencies. Due to financial...

This study examines the relationship between green finance and environmental sustainability in Nepal from 1990 to 2023. Constructing the index for financial development by using Principal Component Analysis (PCA), the relationship is explored using Auto-Regressive Distributed Lag (ARDL) followed...

Financial institutions face increased reputational, regulatory, and ethical risks as the frequency and complexity of Environmental, Social, and Governance (ESG) controversies increase. Whistleblowing mechanisms are essential in the context of institutional resilience and the mitigation of...

As Thailand's financial sector accelerates its digital transformation, cybersecurity has transitioned from a mere technical support function to a strategic imperative that governs operational risk and financial stability. This study empirically examines the efficacy of cyber risk controls and...

In essence, the currently large stablecoins are electronic money issued by narrow balance sheet vehicles into a distributed ledger (or a "programmable platform"). Many believe that they will have significant success as a new form of money. Members of the current US administration expect that US...

Lara Ikrat: "Talentsuche in der Finanzbranche: Effektive Recruiting-Maßnahmen" / Lea Schlamp: "Künstliche Intelligenz im Recruiting: Einsatzmöglichkeiten und Herausforderungen für Kreditinstitute" / Simon Trautmann: "Auswirkungen des digitalen Euro für Privatkunden auf die DZ BANK AG"

This paper studies the role of banking supervision in anticipating, monitoring, and disciplining failing banks. We document that supervisors anticipate most bank failures with a high degree of accuracy. Supervisors play an important role in requiring troubled banks to recognize losses, taking...

The COVID-19 pandemic has caused market turmoil and economic distress. To understand the effect of the pandemic on the U.S. financial systemic risk, we analyze the explanatory power of detailed COVID-19 data on three market-based systemic risk measures (SRMs): Conditional Value at Risk, Distress...

This paper examines how digital metaspace technologies impact the financial market infrastructure. This paper develops a methodological platform for integrating the financial technology (FinTech) ecosystem models in the financial market infrastructure. The findings show that the benefits of...

Since the 2007 global financial crisis, scholars have attempted to explain market failures using aspects other than corporate governance. Previous studies focused on the function of corporate governance in financial performance, with a dearth of literature on other financial dimensions like risk...

As financial globalization continues to evolve, it has played a pivotal role in the development of financial sectors in developing countries, enhancing efficiency and fostering competition. However, this trend has also raised concerns regarding its socio-economic impacts, particularly in...

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 study investigates the impact of financial development (FD) on energy security risk (ESR) in 48 Belt and Road Initiative (BRI) countries from 1948 to 2022, emphasizing the roles of human capital (HC) and institutional quality (IQ). Findings reveal that FD significantly influences ESR, with...

Despite growing global concern, the gender pay gap (GPG) within China's financial sector remains underexplored through systematic, data-driven approaches. This study presents one of the few, if not the only, systematic literature review (SLR) and bibliometric analyses focused on the GPG in this...

The rapid accumulation of public debt raises global concern over its implications for financial markets. This study examines the effect of domestic public debt on financial development in Middle East and North Africa (MENA) countries, a region marked by sharp heterogeneity in institutions, debt...

Both developed and developing countries increased their energy consumption while continuing to advance economically and financially. In parallel with increasing energy use, the intensification of anthropogenic activities has led to higher greenhouse gas emissions, exposing countries to the...