We have just concluded a historic year of elections, and we’ve seen the world's voters largely reject the economic status quo. Accordingly, we are witnessing diminishing support for multilateralism and an increasingly fragmented policy landscape, all in the context of evolving geopolitical risks, harrowing debt levels and mounting demographic challenges. Against this backdrop, the Institute of International Finance (IIF) will focus intensively on the risks, and, more importantly, the growth opportunities of the future. The global financial industry is instrumental for capital formation and job creation, and thus critical for the innovation and the broad-based economic growth needed to stand up to the challenges ahead.
I’m pleased to share this video selection of highlights from 2024.
Looking ahead to 2025, here is a brief snapshot of our priorities in the coming year:
+ Geopolitics: The IIF will actively engage members as they assess global risks from trade tensions, military conflicts, financial sanctions, economic fragmentation and rising debt levels. The IIF's 2025 Chief Risk Officer survey is expected to demonstrate that financial institutions have elevated geopolitics to a top three risk.
+ Global Economic Trends and Research: Crucial political events and policy pivots in North America, Europe, and Asia have interacted with mega-trends (not the least, the AI boom) to produce paradigm shifts globally. The IIF will focus its economic research to interpreting political and economic discontinuities with a focus on implications for the financial sector, long-term growth, and societal welfare. Our macroeconomic research and investor trips were at all-time highs in 2024 and we have planned investor trips to China, Egypt, Mexico, and Brazil for 2025.
+ Prudential Regulation and Fragmentation: The IIF is focused on supporting a level playing field and on fair and transparent global standard setting more broadly. The risk of fragmentation, as regulators differ in approaches to key areas such as capital and liquidity, remains a key concern. We remain focused on Non-Bank Financial Intermediation (NBFI), as financial stability risks from maturity transformation, liquidity and leverage exist. The IIF will also continue advocating for pragmatic and effective global standards for cyber risk management, third party risks and the development of operational resilience frameworks.
+ Insurance: While the global standard setting community has agreed to an international capital standard for insurance, the IIF remains focused on efficient and pragmatic regulation and avoiding misguided approaches to systemic risk in the insurance sector. We remain focused on structural shifts in the insurance business model, e.g., private equity owned or influenced, or offshore arrangements, the importance of sustainable finance and digital transformation to the insurance industry, and the resulting regulatory response.
+ Digital Finance: The IIF will advance its public-private partnership with the BIS on Project Agorá, a global exploration of how tokenization can enhance the functioning of wholesale cross-border payments. We will also simultaneously better shape the objectives of the G20 payments roadmap. Recognizing the transformative impact of AI, the IIF will advance dialogue with the international community on risks and governance in 2025. Critically, the IIF will increase its focus on quantum preparedness, which requires industry to take important actions now.
+ Transition Finance: As we help members navigate a new landscape for sustainable finance, the IIF will underscore that the financial sector can support, but not drive, the net-zero transition—that’s the job of policymakers. We will continue to advocate globally for an enabling environment for transition finance to flow to all sectors and to both emerging and developing economies. The IIF will also amplify its advocacy in Europe for a more pragmatic EU sustainable finance agenda that supports growth and competitiveness.
+ Sovereign Debt: The IIF remains committed to highlighting debt-related vulnerabilities across mature and emerging markets via its flagship Global Debt Monitor and thematic reports. As a key private sector representative to the G20-IMF-World Bank Global Sovereign Debt Roundtable (GSDR), the IIF will continue to share developments on the international financial architecture with our members.
We are excited to announce that we will strengthen our presence in Europe. Europe has the potential to unleash accelerated economic growth, capital formation and productivity—and unlocking this potential will depend on the essential role of the financial services industry in driving prosperity.
We will continue to deliver our content and expertise on these issues to our members via our world-class events, which are a robust showcase of speakers and themes from across the industry. Going into 2025, we will hold numerous regional events, including an Australia Forum and European Summit in March and our flagship Annual Membership Meeting in Washington, DC.
Our Future Leaders Group continues to recognize emerging leaders and the future C-suite of the financial industry. As challenges evolve, preparing the next generation of financial leadership is more critical than ever to ensure the stewardship of a sound global financial system.
As I’ve said before, I firmly believe the role of the IIF has never been more important. With numerous challenges to multilateral solutions, the ability to bring together a truly global membership from across the spectrum of financial intermediaries is critical. As a trusted interlocuter with global regulators and standard setters, we enable IIF members to have a seat at the policymakers' table.
Please do not hesitate to reach out with any comments, concerns or suggestions as we prepare for 2025. Thank you and I wish you all the best for the new year.
Best,
Tim