FLARblog | Geopolitical Risk Hits Both Sides of Banks’ Balance Sheets: Evidence from Emerging Markets

Geopolitical tensions have become an increasingly important source of economic and financial uncertainty. Events such as the Russia–Ukraine war, tensions between the United States and China, trade disputes, sanctions, and regional conflicts have intensified concerns about the resilience of financial systems, particularly in emerging economies, where banks play a central role in financial intermediation and remain heavily dependent on domestic funding conditions.