Finance

Why shadow banks beat traditional lenders in some markets but not others

In India, shadow banks do not compete with traditional banks through a single mechanism – fintech lenders use superior data technology to reach underserved borrowers in unsecured markets, while non-fintech shadow banks exploit lighter regulatory cons...

Finance

Kim Fe Cramer Pulak Ghosh Nirupama Kulkarni Nishant Vats

Published

09.04.26

The rise and fall of China’s overseas lending

China's trillion-dollar lending boom to the developing world has followed the same boom-bust pattern as past sovereign debt cycles, leaving many low-income countries trapped in a silent debt crisis with little prospect of coordinated relief.

Finance

Sebastian Horn

Published

25.03.26

The rise of digital payments in Latin America

Digital payments in Latin America have rapidly replaced cash – driven by innovation, interoperability, and policy – delivering gains in convenience, financial inclusion, efficiency, and growth, while raising complex challenges around informality and ...

Finance

Diego Vera-Cossio

Published

19.03.26

Credit card default is driven by job loss, not contract terms

Evidence from Mexico shows that job loss and employment instability – rather than high interest rates or minimum payment rules – are more important drivers of credit card default among new borrowers, suggesting that social protection may be more effe...

Finance

Sara G. Castellanos Diego Jiménez Hernández Aprajit Mahajan Eduardo Alcaraz Prous Enrique Seira

Published

20.03.26

Navigating Senegal’s unexpected debt crisis

Senegal enters 2026 with a soaring public debt and very limited degrees of freedom. So, what should the government do?

Finance

Abdoulaye Ndiaye Martin Kessler

Published

23.01.26

When earthquakes shake markets: How investors reassess sovereign risk after natural disasters

Combining monthly data for 96 economies with a geophysical dataset of more than 44,000 earthquakes from 2012–2023, our analysis uncovers a stark asymmetry: major earthquakes raise sovereign spreads only in countries with low administrative and fiscal...

Finance

Rabah Arezki Patrick A. Imam Kangni Kpodar Dao Le-Van

Published

08.12.25

When firms act like banks: Carry trades and currency risk management in emerging markets

Short-term foreign currency borrowing is largely used for carry trade-like activities rather than financing productive investment, underscoring the need to focus on debt maturity and firm heterogeneity when designing policies to manage financial risk...

Finance

Annie Soyean Lee Steve Pak Yeung Wu

Published

06.11.25

How expanding deposit insurance changed investor behaviour in India

In India, expanding deposit insurance coverage improved depositor welfare by reducing risk and encouraging a shift towards safer assets.

Finance

Pulak Ghosh Nicola Limodio Nishant Vats

Published

06.11.25

Bank lending during a non-financial recession: Lessons from COVID-19 in Mexico

Bank credit can support firms during recessions in contexts where banks are sufficiently capitalised to lend. However, whether bank lending amplifies or mitigates a downturn – depends not only on banks’ fundamentals, but also on changes to their risk...

Finance

Alex Rivadeneira Rodolfo Oviedo Brenda Samaniego de la Parra

Published

26.08.25