The World Bank (WB) presented a new working paper on financial sector development in developing countries.

According to experts, more than 30% of national economies may face high risks to financial stability over the next 12 months. The key risks include the growth of public debt. Lack of access to financing for small and medium-sized businesses, low competition and high state participation in the banking sector, as well as excessive investments in public debt by local banks create additional problems. For example, between 2012 and 2023, the volume of bank assets invested in public debt increased by 35%.

To improve financial stability, the WB recommends creating interagency mechanisms for managing financial crises, strengthening the operational independence and powers of financial regulators, ensuring effective supervision of financial institutions, and supporting digitalization to create an inclusive and competitive environment.