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Geopolitical risk is reshaping global finance, one bank loan at a time

Research from the Centre for Economic Policy Research argues that geopolitical risk is now directly influencing how banks lend around the world. According to the analysis, rising tensions between states are changing loan pricing, credit availability and cross-border lending decisions, meaning global finance is being restructured gradually through individual banking choices rather than through dramatic crises.

Why now: Ongoing geopolitical tensions such as trade conflicts and wars are making banks and investors reassess exposure to political risk.

Centre for Economic Policy Research

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