Skip to Main Navigation

Sovereign Debt and the Banking System Nexus

April 11, 2023
Washington D.C.

As the macroeconomic and financial conditions tighten a dangerous "sovereign-bank nexus" has emerged in many developing economies. Government and SOE debt take up a large share of the assets of financial sector institutions in many developing countries, heightening the risks of financial crises.

At the 2023 Spring Meetings Event of the World Bank and the IMF, panelists discussed these challenges and actions to minimize the risks of a financial crisis.


Pablo Saavedra
Vice President for the Equitable Growth, Finance, and Institutions (EFI) Global Practice


Hyun Song Shin
Economic Advisor & Head of Reserach, BIS

Socorro Heysen
Superintendent of Banks, Insurances & Private Pension Funds Authority, Peru

Nicolas Véron
Senior Fellow, Bruegel & PIIE

Ceyla Pazarbasioglu
Director, Strategy, Policy & Review, IMF