Impact of COVID-19 on the Global Financial System
As the human and economic costs of the COVID-19 pandemic have unfolded, the global financial system has been both a source of strength—with banks and fintechs helping distribute support to small businesses and households in need—and an area of potential risk, with record levels of market volatility and growing concern around credit losses. Governments, central banks, regulators, and international organizations have moved rapidly to address the economic collapse and financial fallout, but questions remain around how policy should continue to evolve to preserve financial stability. The Forum’s Platform for Shaping the Future of Financial and Monetary Systems has convened several virtual roundtables since early March—with stakeholders from banks, asset managers, fintechs, insurers, investors, international organizations, and central banks—to discuss the impacts of COVID-19 on the global financial system. This briefing summarizes the outcomes of these initial discussions, highlighting participants’ views on financial developments and on the highest priorities for policy-makers moving forward.
