By Sofia Anyfantaki, Marianna Blix Grimaldi, Carlos Madeira, Simona Malovana and Georgios Papadopoulos Climate change poses risks to public finances through various channels: adaptation and mitigation measures may demand higher public spending, governments may have to divert resources from productive investments to new climate change-mitigating technologies, and the effects of climate change may weigh on[…]
By Ana Maria Ceh, Pierce Daly, Johanne Evrard, Michael Grill, Alessandra Martino, Michael Wedow and Christian Weistroffer Europe’s asset management industry is booming. Over the past decade, assets under management have nearly doubled, now surpassing €20 trillion. The sector has grown around three times faster than the banking sector, which holds over €39 trillion in[…]
The Governing Council of the European Central Bank (ECB) has decided to enhance the Eurosystem repo facility for central banks (EUREP) to make it more flexible and effective in supporting the smooth transmission of euro area monetary policy. Under EUREP, the Eurosystem provides backstop euro liquidity to non-euro area central banks against high-quality euro-denominated collateral,[…]
European Systemic Risk Board Press Release The European Central Bank (ECB) and the European Systemic Risk Board (ESRB) today published a joint report entitled “Financial stability risks from linkages between banks and the non-bank financial intermediation sector”. The report finds linkages between banks and the non-bank financial intermediation (NBFI) sector to be significant, and while[…]
by Marco Albori This policy brief reviews recent evidence on how geopolitical tensions and political divides affect cross-border capital flows. Geopolitical risk systematically reduces flows across asset classes, with the sharpest effects on those towards emerging economies. Political alignment also matters and increasingly shapes the geography of international investment, with signs of bloc-based allocations, especially[…]
Author(s): Dohan Kim and Gian Maria Milesi-Ferretti Date: January 2026 Abstract: Over the past two decades, many emerging market economies have become more resilient to external financial shocks. This paper assesses whether such resilience is broadly shared across emerging markets and developing economies by classifying them into three tiers based on economic size, income level,[…]
By Giovanni Donato and Cédric Tille Financial globalisation since the 1990s has led to large holdings of cross-border assets and liabilities in many countries. This column analyses the yields on assets and liabilities for 20 advanced and 22 emerging economies over 1999-2023, and finds that they were on a mostly downward trend, before increasing from[…]
By Jon Danielsson Each financial crisis brings more financial supervision, more models and larger buffers – but still fragility persists. The paradox of perfect supervision is that the very attempt to safeguard stability can increase systemic risk by increasing complexity and synchronising behaviour. This column argues that resilience, not ever-tighter risk-informed control, should be the[…]
by Carlos Madeira I build hand-collected data with biographical information on central bank leaders across more than 200 countries. I show that gender, age, education and career profiles changed substantially since the 1980s. Recent years show more women, PhDs, people with previous roles in finance ministries and older central bankers. I then show life experience[…]