MGI examined the financial assets of more than 100 countries since 1980. The result is a comprehensive profile of the global capital market (GCM) and an in-depth analysis of its evolution across geographies and asset classes.
The global financial stock, which now totals more than $118 trillion, could increase to $200 trillion by 2010. It has grown faster than the world’s gross domestic product, indicating that financial markets are becoming deeper and more liquid. Most of this growth has come from a rapid expansion of debt. Meanwhile the role countries and regions play in the global capital market is changing.
The U.S. plays a unique role in the GCM not only as the world's largest financial market but also as a global capital hub and conduit. The importance of the U.S. relative to the world in total private debt (51 percent) and equities securities (45 percent) has increased while the U.S. share of government debt and bank deposits has dropped to 25 percent each. The U.S. dollar maintains its unique position as the world's reserve currency despite its recent depreciation.
Europe is the second largest capital market with 31 percent of global financial stock and its growth over the past 10 years has outpaced the rest of the world's. The integrating eurozone today represents two-thirds of Europe’s financial stock, the U.K. acts as the region’s financial hub while Switzerland is a global private bank. Eastern Europe is one of the hot growth spots in the global financial stock.
Asia is made up of markets that are both relatively isolated and very different, with Japan dominating two-thirds of the region’s financial stock and China driving the region’s financial stock growth. Japan is losing global share in all asset classes but government debt securities. China has amassed a sizeable share of global bank deposits (9 percent) and is experiencing financial deepening across all asset classes.
Mapping the global capital market second annual report
The world's financial assets now total $136 trillion, according to MGI's second annual review of the financial assets of more than 100 countries since 1980. Read more
Interactive exhibit
Overview of capital market trends and growth in key regions around the world. Launch interactive exhibit
