Global financial system

The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization, its evolution is marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. In the late 1800s, world migration and communication technology facilitated unprecedented growth in international trade and investment. At the onset of World War I, trade contracted as foreign exchange markets became paralyzed by money market illiquidity. Countries sought to defend against external shocks with protectionist policies and trade virtually halted by 1933, worsening the effects of the global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs worldwide. Efforts to revamp the international monetary system after World War II improved exchange rate stability, fostering record growth in global finance.

Latest News for: Global financial system


Fixing finance: How the technology powering Abra opens access to the world’s markets

Abra 25 May 2019
This image was pulled from the infographic called “7 major flaws of the global financial system.” Graphic by Visual Capitalist ... This image was pulled from the infographic called “7 major flaws of the global financial system.” Graphic by Visual Capitalist ... Currently, the global financial system is subject to manipulation and devaluation....

Why Is Trump Sending More Troops and Firepower to the Middle East? That’s Classified

Time Magazine 25 May 2019
has turned the global financial system into a weapon against Tehran. The policy has triggered an exodus of corporations and financial institutions that would rather abandon their investments in Iran than risk U.S....

Vatican financial watchdog boasts steady progress on reform

Princeton Daily Clarion 24 May 2019
VATICAN CITY -- The Vatican's financial watchdog says that after nearly 10 years of reforms, the Holy See has a "fully functioning" system of financial regulation and intelligence that is increasingly integrated into the global financial system ... ....

The richest 10% of households now represent 70% of all U.S. wealth

Market Watch 24 May 2019
Sløk said the financial crisis has played a significant part in this growing gap, which resulted in the Federal Reserve stepping in to stem a massive ripple of losses through the global financial system as the housing market imploded ... “The response to the financial crisis was for ......

Three Things Motivating China’s Position in Trade Negotiations With the US

truthout 24 May 2019
It is generally accepted that the reformers would like to see some of the very changes that the Trump administration has been pushing for, such as more protection for intellectual property rights, open competition and a modern financial system to allow better global integration and a free-floating currency....

Opinion: China has a silver bullet in its trade-war arsenal

Market Watch 23 May 2019
Such a devaluation, if it comes, would be a profoundly deflationary event for the global financial system, after which I would expect the 10-year Treasury TY00, +0.16% to drop below 1% ... Such a devaluation, if it comes, would cause a deflationary shock in the global financial system and cause inflation in the Chinese domestic economy to surge....

Regulatory review could boost SME funding, says Absa

Business Day 23 May 2019
The minimum reserves under Basel III were increased to strengthen supervision and risk management of banks after the 2008 global financial crisis ... SA’s financial system is ranked 18th in the world by the 2018 World Economic Forum’s global competitiveness index....

CBN’s Moves to Cap Treasury Bills Investment Unsettle Banks

This Day 23 May 2019
Emefiele listed other global uncertainties to include the normalisation of monetary policy by the US Federal Reserve System, which could lead to acute capital reversals; increased financial fragilities in emerging markets; volatility of global crude oil market due to the US ......

Zuckbucks or Bust: How SEC Rulemaking Hurts Startup Cryptos and Favors Big Tech

Bitcoin 23 May 2019
Given that cryptocurrencies emerged in the wake of the financial crisis of 2008 as an alternative to the fiat-based global financial system centered around Wall Street, US regulators agreeing to lay down their arms for crypto-offerings that do not have the deflationary mechanism ......
photo: AP / Michael Probst
CEO of Deutsche Bank Christian Sewing speaks during the annual press conference in Frankfurt, Germany, Friday, Feb. 1, 2019.

Deutsche Bank CEO pledges tough investment bank cuts as shares hit low

Yahoo Daily News 23 May 2019
Ranked as one of the most important banks in the global financial system, the bank has been plagued by failed regulatory tests, ratings downgrades, multi-billion dollar fines and management upheavals, with investment banking often the culprit ... global credit trading and U.S....

Ex-WH economist: China’s New Silk Road is a 'threat to the existing system'

Yahoo Daily News 22 May 2019
But if China does manage to take over the global financial system — by internationalizing the Chinese RMB — the Digital Silk Road would help China “circumvent external surveillance” and create “both an alternative and parallel to the U.S.-centered SWIFT system,” according to researchers at the UK-based Institute of Development Studies....

Emefiele assures proactive approach against external pressures on the economy

Business Day Online 22 May 2019
Giving an overview of how central banks across different economic blocs responded to the global financial crisis, he noted that while the impact of the global financial crisis had little effect on the Nigerian economy, the drop-in commodity prices between 2014 – 2016, brought to the fore the limitation of conventional monetary policy tools....

This $1.2 billion San Diego fintech unicorn backed by Bridgepoint says its new payments partnership with JPMorgan is a 'game-changer'

Business Insider 22 May 2019
Financial management technology firm Kyriba says it's partnering with JPMorgan Chase for a real-time payments service — a move that the San-Diego based company calls a "game changer." ... Kyriba says its services "bridge global financial systems, empowering finance executives to more efficiently mobilize their global cash and liquidity."....