Banking

Banks — from central banks to regulated institutions and shadow banks — are the backbone of economic growth and financial stability. Yet, the banking sector faces unprecedented challenges and opportunities driven by global economic shifts, climate change, and technological disruption. Our research is at the forefront of understanding how the banking sector can evolve to meet these demands, and how regulation can support this evolution.

Our research focuses on several key themes:

• The role and effectiveness of regulatory frameworks (e.g., ring-fencing, capital requirements) in safeguarding stability.
• How banks’ investment strategies and risk appetites are adapting to new financial realities.
• The strength of governance mechanisms in an era of increasing complexity.
• Banks’ engagement in supporting the green transition and sustainable finance.
• The growing impact of climate change on the banking sector’s resilience and risk management.
• The transformational role of artificial intelligence and machine learning — from enhancing risk assessment to expanding access to capital for underserved communities.
• The rise of open banking, reshaping competition, innovation, and customer empowerment.
• The emergence of digital currencies and decentralized finance (DeFi), challenging traditional banking models and regulatory frameworks.
• Broader technological advances, including blockchain, data analytics, and real-time payments, that are redefining the future of banking.

We aim to inform policymakers, industry leaders, and academics about how banking can better support a stable, sustainable, and innovative economy.

Lead: Dr Mahmoud Fatouh

View Dr Fatouh's profile