The global financial stock the total amount of capital intermediated through the world's banks and capital markets and made available by them to households, businesses, and governments is now more than $118 trillion and will exceed $200 trillion by 2010 if current trends persist. The global finance stock has grown faster than the world's GDP, creating financial markets that are deeper and more liquid.
Much of the growth in global financial assets comes from a rapid expansion of corporate and government debt, with all of the attendant benefits and risks. With a few qualifications, this trend bodes well for the world's economies, since deeper markets provide better access to capital and improve the allocation of risk.
The roles that major countries and regions play in capital markets are changing. The United States plays the largest of them, attracting foreign issuers and investors alike. European markets are gaining in market share and depth, however, as they becoming more integrated. Meanwhile, Japan's role in global capital markets is diminishing while China has become a new force. Launch this chapter (PDF - 697 KB)
