Guest editorial: Navigating systemic financial risks in a globalized and digitalized economy

Navigating systemic financial risks in a globalized and digitalized economy 1. IntroductionIn the third decade of the twenty-first century, the global financial system stands at an unprecedented structural crossroads.Many countries have made significant progress in advancing global economic integration and digitalizing their financial systems to enhance market efficiency and connectivity.While this dual evolution has optimized financial resource allocation, it has also profoundly reshaped the generation mechanisms, transmission pathways and governance boundaries of systemic financial risk.As highlighted in the IMF's October 2025 Global Financial Stability Report [1], the global economy is operating on "shifting ground beneath the calm", where surface-level resilience masks deep-seated structural vulnerabilities.In this context, researchers have begun to explore the evolution of systemic financial risk within a globalized and digitalized economy.Acemoglu et al. (2015) show that financial networks exhibit a distinct phase transition, where dense connectivity buffers minor shocks but facilitates systemic risks once a critical threshold is surpassed.Shifting to digital disruption, Jia (2024) finds that FinTech penetration is positively associated with increased bank risk-taking, a process primarily driven by the erosion of bank charter value.Furthermore, Elekdag et al. (2025) find that higher FinTech penetration generally heightens risk-taking by financial intermediaries.However, they provide evidence that stronger domestic institutions can reverse this effect, leading to reduced risk-taking.Moreover, researchers have explored the implications of extensive global interconnections, particularly the propagation of shocks through international production and geopolitical networks.Di Giovanni and Hale (2022) demonstrate that global production linkages play a quantitatively important role in risk propagation, accounting for nearly 70% of the total impact of US monetary policy shocks on global stock returns.Caldara and Iacoviello (2022) develop a news-based Geopolitical Risk (GPR) index to show that both geopolitical threats and actual events significantly increase disaster probability and amplify downside risks.Overall, both globalization and digitalization play a crucial role in reshaping the modern landscape of systemic financial risk.While these forces enhance financial integration and service efficiency, they also create complex network effects and digital competition that can amplify financial vulnerabilities.Through mechanisms such as global production linkages and FinTech-driven market shifts, the stability of financial systems is increasingly susceptible to cross-border shocks and structural disruptions.Further analysis of the evolving nature of systemic risk in this interconnected environment is crucial for enhancing the resilience and governance of the global financial system.To this end, we have organized a special issue titled "Navigating Systemic Financial Risks in a Globalized and Digitalized Economy" to explore these critical dynamics and broader research topics in this area. Contributions to this special issueWe received numerous submissions in response to our call for papers, showing a growing interest in managing systemic financial risks in a globalized and digitalized economy.After a rigorous peer-review process, twelve papers were selected for this special issue.The authors are from China, the United Kingdom, Spain and Tunisia.These papers deepen our understanding of systemic risks in the modern financial landscape and offer valuable insights in the following key areas.