Navigating Global Financial System Fragmentation 2025

4 This report’s policy recommendations provide a practical guide for policy-makers to action the principles and rules outlined in the previous section. In the short to medium term, policy- driven geoeconomic fragmentation will likely remain and may increase further. This section outlines concrete actions to ensure that the core principles underpinning the operations of the financial system remain intact. The interventions and recommendations are organized into three tiers of action, based on the time horizon and fragmentation levels. The first tier – contending with existing fragmentation – acknowledges that some degree of fragmentation is likely inevitable. Coordinated management of this process can prevent systemic disruption. The second tier of responses – resisting further fragmentation – focuses on preventing divisions from becoming permanent fractures and maintaining connections where possible. Finally, the third tier – reforming the system – recognizes that to achieve long-term stability the underlying sources of fragmentation need to be addressed through structural changes to the global financial architecture. This graduated approach allows policy-makers to address immediate challenges while working toward more fundamental solutions.Policy recommendations: A framework for action The recommendations in this section provide practical guidance for policy-makers. Navigating Global Financial System Fragmentation 32