GFDR 2013 Report
In September 15, 2008, the failure of the U.S. investment banking giant Lehman Brothers marked the onset of the largest global economic meltdown since the Great Depression. The aftershocks have severely affected the livelihoods of millions of people around the world. The crisis triggered policy steps and reforms designed to contain the crisis and to prevent repetition of these events. Four years later, with banking woes ongoing in various parts of the world (most notably in the euro area), it is a good time to evaluate these reforms and their likely contribution to long-run financial development. The crisis experience is thus an important part of the motivation for this inaugural Global Financial Development Report. The crisis has prompted many people to reassess various official interventions in financial systems, from regulation and supervision of financial institutions and markets, to competition policy, to state guarantees and state ownership of banks, and to enhancements in financial infrastructure.