The World Economic Forum released today The Future of the Global Financial System; A Near-Term Outlook and Long-Term Scenarios. The report explores a near-term industry outlook characterized by an expanded scope for regulatory oversight, back to basics in the banking sector, some restructuring by alternative investment firms and the emergence of a new set of winners and losers. Over the long-term, the report finds that a range of external forces and critical uncertainties have the power to significantly shape the industry. In particular, the World Economic Forum’s study found that the pace of geo-economic power shifts from today’s advanced economies to the emerging world and the degree of international coordination on financial policy are the two most critical uncertainties for the future of the global financial system. By employing scenario analysis, the report explores the impact of these and other key driving forces on the potential governance and structure of financial markets from today until 2020. Image: weforum.org

Source: World Economic Forum