Title: The globalisation of finance and its implications for financial stability: an overview of the issues

Authors: Jorge A. Chan-Lau

Addresses: Monetary & Capital Markets Department, International Monetary Fund, 700 19th St NW, Washington, DC 20431, USA; Structured and Securitized Products Department, International Finance Corporation, The World Bank Group, 2121 Pennsylvania Ave NW, Washington, DC 20433, USA

Abstract: This article provides a general overview of the impact of financial globalisation on financial stability, with a view to identify the sources of strength and the potential vulnerabilities. Attention is focused on the benefits of and risks for financial stability that are associated with changes in financial markets, the globalisation of the banking system and the role played by other important players in the global financial system, such as pension funds, mutual funds, insurance companies and hedge funds. The risks to financial stability that arise from the regulatory regime are also examined.

Keywords: financial globalisation; financial stability; banks; pension funds; insurance; mutual funds; regulation; benefits; risks; banking system.

DOI: 10.1504/IJBAAF.2008.020240

International Journal of Banking, Accounting and Finance, 2008 Vol.1 No.1, pp.3 - 29

Published online: 09 Sep 2008 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article