Global financial system: "Leveraging pressure can lead to unpredictable outcomes" – WEF 2025.

The critical role of an integrated financial system in fostering economic growth was discussed at the World Economic Forum in Davos. Participants emphasized that global collaboration among central banks, insurance companies, investors, and management firms is essential for developing human potential.

This was highlighted at WEF 2025 in Davos.

The Key Role of Integration

Matthew Blake, head of the WEF Center for Financial and Monetary Systems, stressed that global financial integration enables resources to be directed where they are most needed: “Integration allows for effective investment in small and medium enterprises, supports innovation, and develops local communities. However, it is crucial to remember that any attempts to disrupt this system can have unforeseen consequences.”

Blake also noted the importance of being cautious about political decisions that affect financial processes: “Policies that influence the levers of the financial system must consider not only short-term outcomes but also potential long-term effects, which are not always obvious.”

Tariffs, Sanctions, and Their Impact on Trust

Kenneth Rogoff, a professor at Harvard University, shared his perspective on the harm that excessive tariffs can cause: “When tariffs rise, it creates barriers to financial integration. People tend to keep capital within their countries, as repatriating funds from abroad becomes too costly. Such measures exacerbate economic isolation.”

Valerie Urban, CEO of Euroclear, emphasized the importance of trust in the financial system, especially in the context of sanctions.

“Trust is the foundation of the global financial system. If it is weakened, it can lead to a mass exit of players from the market. Fragmentation and disintegration become inevitable, posing a serious threat to stability,” she stated.

Artificial Intelligence as a Tool for Change

One of the significant topics at the forum was the role of artificial intelligence in the development of the financial system.

According to Matthew Blake, AI has immense potential: “Technologies help combat systemic risks by enhancing the accuracy of their assessment. AI is already being used to fight money laundering, terrorism financing, and other crimes. These solutions create a safer financial environment for all.”

However, Valerie Urban pointed out the need to ensure a balance between traditional financial markets and new digital technologies.

“Digital solutions will not replace traditional markets, but they must interact effectively. The integration of both worlds is the path to a more flexible and resilient financial system,” he said.

Participants' Conclusions

The discussions in Davos underscored the importance of maintaining the integrity of the financial system, which has been built over decades. Participants urged politicians to carefully analyze the consequences of their decisions to avoid unforeseen changes.

“Changes should be based on collaboration, trust, and caution. Only then can we build a stable future for the global economy,” concluded Valerie Urban.

Background. Previously, Mind reported on how digital twins and AI are transforming global manufacturing. “Instead of eight days – just two”: innovative solutions for supply chains were discussed in Davos.