Navigating Global Financial System Fragmentation 2025

Clearly define and uphold the rule of law to ensure impartial enforcement and predictability across the financial system Principle 1 Regulate and manage critical financial market infrastructures, but avoid politicizing or severing the underlying financial rails, given that these systems are essential for maintaining the integrity, functionality and efficiency of the financial systemPrinciple 5 Respect financial and physical property ownership rights to maintain trust and encourage investment, thereby fostering financial stabilityPrinciple 2 Ensure parallel financial market infrastructures are interoperable to facilitate optimal transactions and market efficiency Principle 6 Avoid unilaterally expropriating sovereign assets even during times of heightened tensions or conflictPrinciple 3 Structure domestic and multilateral policies and financial regulations to support financial stability and ensure cross-border flows of capital, data, goods, people and ideas Principle 7 Safeguard independence and bolster the capabilities of international institutions, such as standard-setting bodies, to preserve their role in global financial governancePrinciple 4 Shield the independence of fiscal and monetary policy to promote financial stability, reduce the risk of competitive interference and increase opportunities for transparent decision-making Principle 8Principles to Safeguard the Global Financial System from Fragmentation FIGURE 1 Source: World Economic Forum and Oliver WymanThe Principles to Safeguard the Global Financial System from Fragmentation listed in Figure 1 assert the basic conditions that enable financial-services actors to conduct business across jurisdictions and whose protection preserves the integrity of the global financial system.