Geneva Report 27 calls for urgent reforms to strengthen global financial stability

• The Geneva Report analyses the banking turmoil of March 2023 emphasising the fragility of banking systems despite the reforms implemented after the global financial crisis
• The authors call for more reforms to ensure financial stability

The 2024 Geneva Report, "Much Money, Little Capital, and Few Reforms", presented on 16 September at Frankfurt School of Finance & Management, highlights critical gaps in the global financial system. Despite post-crisis reforms, expansionary monetary policies in the U.S. exposed large funding vulnerabilities, leading to liquidity and solvency concerns during the banking turmoil of March 2023.

The report highlights several structural vulnerabilities, such as ineffective poor risk management, inadequate supervision, and gaps in regulatory frameworks.

The authors of the Geneva Report criticise the incomplete regulatory framework that continues to leave the global financial system vulnerable. In particular, the authors note that many banks in Europe remain structurally inefficient and poorly valued, while globally, the resolution regimes for so-called systemic banks remain inadequate. The report also stresses the need for closer integration of monetary policy and financial stability measures to safeguard against future crises.

The 27^th Geneva Report on the World Economy was presented by three of its authors, Sascha Steffen (Professor of Finance at Frankfurt School of Finance & Management and DWS Senior Chair in Finance), Ignazio Angeloni (Leibniz Institute for Financial Research SAFE; European University Institute in Florence and Bocconi University) and Stijn Claessens (Yale School of Management; Florence School of Banking and Finance and CEPR). Katrin Assenmacher (Head of Division Stress Test Modelling, DG Macroprudential Policy & Financial Stability, European Central Bank) commented on the report from a central bank perspective, highlighting the crucial role of the results for regulators and policymakers.

At the event, the authors and Assenmacher urged policymakers to stay the course on reforms initiated after the global financial crisis to ensure financial stability in a rapidly evolving economic landscape.

For more information and to download the full 2024 Geneva Report, please visit: Geneva Reports on the World Economy | CEPR

To interview Professor Sascha Steffen about the report’s findings, please contact Nicole Clos (n.clos@fs.de).