An Overview of Financial Integration

Introduction

You're watching global money touch your balance sheet and supply chain, so you need a clear frame for financial integration - the increasing cross-border flows of capital, credit, and payments. It matters now because cross-border capital flows are larger and market linkages are tighter, so funding shocks and asset moves transmit faster across borders. The scope covers capital markets, cross-border banking, payment systems, and regulatory alignment, which tells you where to hedge, manage liquidity, or push for policy changes. One clean line: deeper links mean bigger opportunity and faster risk - and that should change how you price risk and run liquidity, defintely.

Key Takeaways

• Financial integration = rising cross-border flows of capital, credit, and payments; deeper links speed both opportunity and risk transmission.
• Technology, policy liberalization, and global market forces are accelerating integration and tightening market linkages.
• Watch multiple forms and channels-de jure vs de facto integration, regional vs global scale, cross-border banking, capital markets, and payment rails.
• Integration brings lower financing costs and broader risk sharing but increases contagion, sudden stops, currency/maturity mismatches, and uneven distributional impacts.
• Practitioner and policy actions: map cross-border exposures, run three stress scenarios, calibrate macroprudential buffers, and strengthen international coordination and contingency funding.

Key drivers of financial integration

You're increasing cross-border activity and need to know what's pulling capital, payments, and credit together so you can act now; the three forces to prioritize are technology, policy, and market dynamics. Here's the direct takeaway: focus on payments rails, regulatory mapping, and exposure controls to capture gains and limit systemic spillovers.

Technology: faster payments, APIs, blockchain rails

You're choosing tech that determines how fast and cheaply money moves across borders and who wins on settlement risk. Priorities: reduce settlement latency, cut reconciliation work, and limit pre-funding needs.

Practical steps

• Map existing rails: list correspondent banks, ACH links, card networks, and any instant rails.
• Benchmark latency and fees across rails; pick a primary instant-rail target for low-value, high-frequency flows.
• Standardize message formats on ISO 20022 and deploy API gateways (OpenAPI) for partners.
• Pilot tokenized settlement or ledger rails in a sandbox with clear finality tests and legal backing.
• Measure liquidity impact: run intraday funding and pre-funding scenarios for new rails.

Best practices and considerations

• Require settlement finality legal opinions before moving live.
• Keep dual-path reconciliation: legacy + new rail for 90 days minimum.
• Use transaction-level telemetry to detect latency, failed messages, and routing inefficiencies.
• Password-manage keys and access; treat blockchain nodes like critical infrastructure.

Actionable short checklist

• Run a 30‑day latency/fee benchmark.
• Build a two-stage pilot (sandbox → live limited flows).
• Document contingency: fall back to correspondent banking within X hours.

One-liner: pick a primary instant rail, prove finality, and keep the old path until it's rock-solid.

Policy: trade agreements, capital account liberalization, regional treaties

You're operating across jurisdictions with different rules; policy shapes who can move capital, when, and under what constraints. The key is proactive regulatory mapping and staged compliance.

Practical steps

• Create a regulatory matrix for each jurisdiction: capital controls, investment screening, tax treaties, and AML/KYC rules.
• Engage regulators early when planning cross-border products; request written guidance on temporary controls and reporting cadence.
• Design phased market entry tied to de jure liberalization milestones-open trading access only after legal gates clear.
• Negotiate investor protection and dispute-resolution clauses in bilateral agreements where possible.

Best practices and considerations

• Use a capital-flow management toolkit: disclosure, prudential limits, and time-bound windows for liberalization.
• Account for political risk: model rule rollback and re-imposition of controls in stress tests.
• Coordinate with multilateral bodies for large exposures to avoid regulatory surprise.

Actionable short checklist

• Build a legal checklist for entry; update quarterly.
• Plan a staged liberalization path tied to regulatory milestones.
• Set rapid notification procedures for regulatory changes.

One-liner: map rules first, enter in phases, and keep regulators in the loop to avoid sudden stops.

Market forces: investor diversification, search for yield, global asset managers

You're competing for capital and offering global investors options; asset managers and yield-seeking investors drive cross-border allocations, which raises liquidity and FX dynamics on your books. Manage exposures aggressively.

Practical steps

• Quantify cross-border exposure by currency, maturity, and counterparty. Update weekly for active products.
• Set allocation guardrails: maximum foreign-currency share, liquidity buffers, and concentration limits by investor type.
• Hedge systematically: use forwards, swaps, or cross-currency repos for currency and duration mismatch.
• Do operational due diligence on global managers and custodians-confirm settlement practices, fail procedures, and custody chain.

Best practices and considerations

• Stress test large outflows and rapid reallocation by global asset managers; include FX stress and liquidity squeezes.
• Price in hot-money behavior: short-term flows can lower funding costs but raise rollover risk.
• Design product wrappers (currency-hedged share classes) to give local savers choices and protect against FX volatility.

Actionable short checklist

• Run a 3-scenario stress: baseline, sudden stop, and rapid FX move.
• Set hedging rules and reblance cadence.
• Require counterparty resilience proofs from agent banks annually.

One-liner: measure exposures weekly, hedge systematically, and limit concentration to survive a flight to safety.

Models and forms of integration

You want to understand how legal rules, market behavior, and geography shape cross-border finance so you can map exposure and set policy or risk limits fast. Here's the direct takeaway: legal opening (de jure) creates the plumbing, economic patterns (de facto) show how tightly markets move together, and geographic scale sets the playbook for controls and contingency planning.

De jure (legal)

De jure means the formal laws and rules that enable cross-border flows-removing capital controls, setting cross-listing rules, and changing foreign-ownership limits. Those are the levers governments and regulators pull to allow or restrict flows.

Practical steps you can take now:

• Map statutes: list all capital account, FX and ownership limits by jurisdiction.
• Sequence reforms: open long-term FDI and portfolio inflows first, then short-term flows.
• Set trigger-based timing: tie removal of a control to macro metrics (inflation 5%, reserves > 3 months imports).
• Build disclosure: require quarterly cross-border exposure reports from banks and funds.
• Pre-clear cross-listing: standardize prospectus and custody rules to speed listings.

Best practices and considerations:

• Phase liberalization over 12-36 months with mid-course reviews.
• Keep macroprudential tools ready: countercyclical buffers of 0-2.5% of risk-weighted assets.
• Preserve temporary controls for 90-day emergency use, with explicit sunset clauses.
• Coordinate tax and AML (anti-money laundering) rules before full opening.

One clean line: sequence law changes, pre-position buffers, and communicate timelines clearly.

De facto (economic)

De facto integration is what markets actually do: correlated returns, synchronized liquidity, and volatile capital flows even where rules remain. This is measured by correlations, funding shares, and flow volatility.

Steps to measure and act:

• Compute rolling correlation: use 36-month rolling Pearson correlation to a global benchmark; flag > 0.6 as high co-movement.
• Track funding dependence: flag when cross-border funding > 20% of liabilities.
• Measure liquidity synchronicity: monitor turnover, bid-ask spreads, and commonality of liquidity across markets.
• Stress scenarios: run 3 scenarios - mild, severe, extreme - e.g., equity shock -15%, -30%, -50%; FX shock -10%, -20%, -40%.

Quick example math: if your fund has $10 billion AUM with 40% in emerging markets and rolling correlation to MSCI World = 0.7, a global sell-off could wipe $2.8 billion (40% × 0.7 × $10bn) of diversification benefit-so you need hedges or liquidity buffers.

Best practices:

• Thresholds: treat assets as highly integrated if 12-month correlation > 0.6.
• Hedge policy: hedge at least 50-75% of FX exposure on illiquid holdings.
• Liquidity buffer: plan for rapid outflows equal to 5-10% of AUM in severe stress.
• Operational readiness: pre-arrange custodian and prime broker failover for 48-72 hours.

One clean line: measure correlations and funding concentration, then size hedges and liquidity to the worst plausible shock.

Geographic scale

Geography matters: regional integration (example: EU-style) creates deep common markets and legal harmonization; global integration (example: access to US/global capital markets) gives scale and liquidity but adds systemic links to major hubs.

Actionable mapping and decisions:

• Exposure map: break down assets and liabilities by country and region; flag any single-country share > 15%.
• Counterparty map: list top 10 foreign banks/custodians and exposures; require limits if a counterparty > 10% of foreign assets.
• Market access plan: for regional focus, prioritize mutual recognition, EU-style passporting, and shared clearing; for global focus, secure global custodians and USD/Euro clearing lines.
• Resolution plan: prepare cross-border resolution and recovery plans with host supervisors for entities with material foreign operations.

Policy and operational considerations:

• Regional playbook: harmonize accounting, disclosure, and bankruptcy rules to reduce frictions.
• Global playbook: maintain global liquidity buffers and committed credit lines equal to 5-10% of foreign short-term liabilities.
• Contingency drills: run tabletop for loss of a major hub (e.g., 72-hour cut to US dollar clearing).
• Data taxonomy: use a standard (ISO country codes, LEI identifiers) for quick aggregation.

One clean line: map exposures by country, then set limits and contingency lines by how systemic that geography is to your balance sheet.

Next step: Risk or Treasury - produce a jurisdictional exposure table and run the three stress scenarios above by Friday.

Channels and financial instruments

You need clear, actionable steps to manage cross-border banking, capital-market access, and payments so exposure is visible and controllable. Here's the practical playbook for each channel.

Cross-border banking: syndicated loans, international branches

Takeaway: map exposures, standardize docs, and size liquidity for stress. One clean line: if one borrower defaults, know who absorbs what.

Start by inventorying positions by jurisdiction and currency: list live syndicated facilities, branch assets, and correspondent lines. Build a counterparty table with committed lines, unused facilities, and tenor buckets; update weekly. Best practice: require each syndicate lead to provide an exposure waterfall and a primary legal opinion for enforceability in the borrower jurisdiction.

Practical steps and checks:

• Run 3 scenarios: mild (FX 10% move), severe (FX 30% + funding shock), tail (country default)
• Set per-counterparty limits by country and currency
• Use standardized docs (eg, LMA-style facility agreements) and centralized collateral schedules
• Net exposures monthly and reconcile with treasury
• Maintain a contingent funding line equal to at least 6 months of expected outflows

Quick math example: a $500 million syndicated loan split across 5 banks equals $100 million each; if one bank's branch loses funding access, the remaining banks must cover that slice or execute a pre-agreed backup facility. What this estimate hides: legal recovery timing and FX conversion costs, so stress those separately.

Capital markets: ADRs, cross-listed equities, global ETFs

Takeaway: choose the listing route to solve liquidity and investor base needs, not vanity. One clean line: listing expands buyer sets but brings tax and disclosure complexity.

Decide between direct cross-listing, American Depositary Receipts (ADRs), or global ETFs based on liquidity goals and regulatory burden. For ADRs, appoint a depositary bank, define ADR ratio, and model dividend withholding implications. For cross-listing, quantify incremental reporting costs and investor relations spend. For ETFs, assess index eligibility and creation/redemption liquidity.

Concrete actions and best practices:

• Model cost/benefit over 24 months: listing fees, ongoing compliance, and expected ancillary liquidity
• Project trading impact: estimate bid-ask widening of 0.1%-0.5% on low-liquidity stocks
• Hedge withholding tax and FX at issuance and dividend times
• Contract market makers with minimum quoting commitments
• Track ADR ratio and underlying float daily

Example decision rule: if incremental free float increases investor reach by > 25% and annualized investor relations plus compliance costs are $1 million, cross-listing will likely be value accretive; if not, consider an ETF wrapper or targeted ADR program. Be pragmatic: listing is permanent and somewhat defintely expensive to unwind.

Payments and settlement: SWIFT, instant rails, tokenized settlement

Takeaway: standardize messaging, adopt ISO 20022, and pilot tokenized settlement for high-value corridors. One clean line: settlement finality reduces risk - prove it before scaling.

Map payment flows end-to-end: originator, intermediary, correspondent, and ultimate beneficiary. Prioritize corridors by volume and value, then upgrade rails: keep SWIFT for high-value messaging, enable instant rails (eg, FedNow in the US) for retail/operational flows, and pilot tokenized rails for atomic settlement where legal clarity exists. Implement ISO 20022 to harmonize data and improve reconciliation.

Operational steps and guardrails:

• Perform daily reconciliation and exception reporting within T+1 for high-value flows
• Run a live failover test for each corridor every 90 days
• Define settlement finality rules and legal opinions before token pilots
• Keep liquidity buffers covering intraday peaks equal to at least 2x average daily outflows
• Use payment APIs for straight-through processing and monitor latency SLAs (target seconds for instant rails)

Tokenized settlement pilot checklist: confirm custody model, obtain legal certainty on finality, run parallel settlement for 30 days, and measure failed-settlement rate reduction. What to watch: operational complexity, regulatory acceptance, and counterparty readiness - mitigate with phased pilots and contractual fallbacks.

Next step: Treasury: produce a cross-border exposures map and run the three scenarios above by Friday; Ops: schedule corridor failover test within 90 days.

Benefits, risks, and distributional effects

You're judging how deeper cross-border finance will change growth and risk for your firm, portfolio, or country - here's the short takeaway: financial integration raises growth potential by lowering funding costs and widening risk pools, but it also amplifies system-wide shocks and shifts returns toward capital owners. Act with mapped exposures, targeted buffers, and clear redistribution steps.

Benefits: lower cost of capital, broader risk sharing, deeper markets

If you're looking to lower financing costs or scale capital, integration helps. Foreign investors, cross-listings, and global debt investors expand demand for securities, which typically narrows yields and raises valuations.

One-liner: More buyers usually mean cheaper money.

Practical steps and best practices

• Measure impact: track changes in blended cost of capital quarterly - include domestic and foreign debt/equity.

• Quantify savings: run scenario math. Example: if integration trims borrowing spreads by 100 basis points on a $500,000,000 loan, annual interest savings ≈ $5,000,000. Here's the quick math: loan × spread reduction = annual savings. What this estimate hides: fees, covenants, and FX hedging costs.

• Use diversified instruments: access ADRs, global ETFs, and Eurobonds to tap investor segments without full operational expansion.

• Optimize capital structure: shift marginal financing to the lowest-cost currency and instrument, but cap foreign-currency debt to avoid currency mismatch.

• Operationalize access: standardize reporting to IFRS or US GAAP, improve corporate governance, and adopt global custody/clearing partners to lower investor frictions.

Risks: contagion, sudden stops, currency and maturity mismatch

Cross-border links mean local shocks quickly become external shocks. Contagion and sudden stops (fast reversals of capital) are the key systemic risks. Currency and maturity mismatches create solvency or rollover crises when FX falls or foreign lenders retreat.

One-liner: Openness helps in calm markets and hurts fast when markets turn.

Practical steps and best practices

• Map risks: build a cross-border exposures register by counterparty, currency, tenor, and collateral. Update weekly during stress.

• Liquidity buffers: hold liquid reserves to cover at least 3 months of net foreign-currency outflows; test with reverse-stress scenarios.

• Stress tests: run three scenarios - mild tightening, sudden stop, and FX shock - and report P&L + liquidity effects for 0-90 days.

• Hedge smart: match cash flows (natural hedge) first; use forwards and options for residual FX risk and limit tenor mismatches on foreign borrowing.

• Contingency funding: secure committed credit lines and pre-position assets in global custodians to enable quick access to dollar funding.

• Policy tools: calibrate temporary capital flow measures and macroprudential buffers to slow destabilizing inflows/outflows - set clear exit criteria to avoid signalling runs.

Distributional impacts: gains to capital owners, adjustment costs for local savers/workers

Integration reallocates economic gains. Owners of capital typically capture higher returns from bigger, deeper markets; workers and small savers can face price and job adjustment costs when sectors shift to trade- or capital-intensive models.

One-liner: Returns concentrate, costs diffuse - plan for both.

Practical steps, policy and corporate actions

• Map winners and losers: disaggregate effects by sector, region, skill level, and household balance sheet to identify who benefits and who loses.

• Design targeted programs: fund reskilling, temporary wage support, and job placement in high-displacement regions to smooth transitions.

• Tax and transfer tools: use progressive tax credits or temporary levies on excess capital gains to fund adjustment programs rather than blanket capital controls.

• Corporate governance: encourage firms to balance shareholder returns with local investment - require disclosure of capital deployment and local employment effects for large foreign-financed projects.

• Financial inclusion: expand retail access to global investment products (low-cost ETFs, fractional shares) so savers participate in returns rather than being only price-takers.

• Monitor distribution metrics: track Gini, household net financial assets, and wage growth quarterly to see if policy interventions are working - adjust within 6-12 months.

Next step: Finance: map cross-border exposures and run three stress scenarios (mild tightening, sudden stop, FX shock) by Friday - owner: Head of Treasury.

Regulation and policy responses

Macroprudential tools

You're managing cross-border exposures and need concrete rules that keep credit flowing without inviting systemic collapse - the quick takeaway: set clear capital and liquidity floors, add stress buffers, and keep temporary controls as a last resort.

Start by aligning minimum regulatory ratios with global standards: maintain Common Equity Tier 1 (CET1) at the Basel floor of 4.5%, Tier 1 at 6.0%, and total capital at 8.0%, plus the Basel capital conservation buffer of 2.5% and a jurisdictional countercyclical buffer of up to 2.5%. For systemically important banks add a G‑SIB surcharge of 1.0-3.5% where applicable.

Operational steps and best practices:

• Set internal targets: regulatory minimum + 3-5 percentage points cushion for CET1.
• Enforce liquidity rules: Liquidity Coverage Ratio (LCR) >= 100%, Net Stable Funding Ratio (NSFR) >= 100%.
• Hold HQLA (high-quality liquid assets) to cover at least 3 months of stressed net cash outflows.
• Use targeted temporary controls (capital flow measures) only when formal triggers hit and publish clear exit paths.

What to watch: if CET1 falls by 1 percentage point on a $100bn bank, that's a <$strong>1bn equity hit - plan for that range. This will defintely reduce tail risk.

International coordination and standards

You need consistent rules across borders so banks and supervisors can act together; the quick takeaway: align on Basel rules, use IMF/FSI surveillance, and sign cross-border MOUs for resolution and liquidity support.

Key standards to follow and operationalize:

• Adopt the Basel III endgame elements (capital floors, leverage ratio, operational risk frameworks) and report compliance at least quarterly.
• Apply IMF and Financial Stability Institute (FSI) surveillance inputs to calibrate macroprudential cycles and countercyclical buffers.
• Create or join Crisis Management Groups (CMGs) and Memoranda of Understanding (MoUs) for information sharing and cross-border resolution plans.

Practical coordination steps:

• Agree common stress test assumptions and data templates across major home-host supervisors.
• Define liquidity backstop arrangements and pre‑agreed rules for temporary capital or liquidity support.
• Maintain joint resolution playbooks with agreed bail-in and asset transfer mechanics.

One-liner: formalize MoUs, run joint stress tests, and pre-negotiate liquidity and resolution lines so you're not improvising during a crisis.

Operational steps: stress tests, FX hedging, contingency funding

You need repeatable operational routines: run realistic stress tests, hedge practical FX exposures, and hold tested contingency funding lines - here's the quick action list you can implement this quarter.

Stress tests - setup and best practice:

• Frequency: conduct top-down enterprise stress tests at least annually and bottom-up bank-level tests semi-annually or when risks spike.
• Horizons & scenarios: include a 1-year adverse scenario and a 3-year severe scenario; calibrate severe to a 20-40% equity shock, 200-400 bps interest-rate moves, and 10-30% currency swings.
• Metrics: track CET1 depletion, liquidity shortfall (30-day), funding gap, and net interest income sensitivity.
• Reporting: present P&L, capital ratios, and liquidity runway under each scenario; require management action plans for breaches.

FX hedging programs - steps and limits:

• Inventory exposures: map gross and net FX positions by currency for next 12 months.
• Hedge policy: target hedge ratio of 80-100% for known cash‑flow exposures over 12 months; for structural FX exposures use layered hedges (forwards, options, swaps).
• Cost cap: set an annual hedging cost budget (for example 5-15 bps of exposure) and review quarterly.
• Governance: require mid-office mark-to-market reporting and monthly limit breaches escalation.

Contingency funding lines - design and tests:

• Size: secure committed lines and liquid assets sufficient for at least 3 months of stressed net cash outflows; aim for diversified counterparties and instruments.
• Stress drills: run drawdown and access tests quarterly; simulate partial and full draws to validate legal and operational readiness.
• Activation rules: document triggers (e.g., LCR breach, >10% deposit run-off in 30 days) and a clear decision tree for drawing lines or invoking central bank facilities.
• Cost and tenor: prefer committed lines with tenors >= 12 months and pre‑negotiated pricing caps where possible.

One-liner: run robust stress tests, hedge near-term FX, and keep committed lines to cover a 3‑month stressed runway - test all of it monthly or quarterly.

Next step: Finance - draft a 13-week cash and stress matrix, including a 12‑month FX exposure map, and deliver to Risk by Friday.

Conclusion: trade-offs, practitioner steps, and policy priorities for the next 12 months

Trade-off: openness raises growth potential but also systemic risk

You're weighing deeper cross-border finance against greater vulnerability to contagion and sudden stops; the upside is cheaper capital and bigger markets, the downside is faster shock transmission.

Keep a clear, measurable trade-off: openness can lower your cost of capital but raises tail risk. Use these benchmarks: maintain a minimum common equity tier 1 (CET1) buffer above the Basel III floor of 4.5%, add the capital conservation buffer of 2.5%, and for systemically important entities consider the G-SIB surcharge up to 3.5% (all percentages of risk-weighted assets). Liquidity rules matter too: keep the Liquidity Coverage Ratio (LCR) at or above 100%.

Here's the quick math: a 1 percentage-point CET1 shortfall on $100 billion risk-weighted assets equals a $1 billion capital hole. What this estimate hides: currency mismatches and off-balance exposures can multiply that shortfall fast.

One-liner: openness buys growth but you must price and reserve for rare, large shocks - defintely do the math.

Practitioner next step: map cross-border exposures and run three stress scenarios

You need an operational map of every cross-border exposure within 30 days, then run three forward stress tests and decide mitigations within 60 days.

Concrete steps:

• Inventory: list affiliates, branches, counterparties, and instruments by country, currency, legal entity, and maturity.
• Quantify: express exposures as percent of total assets and percent of CET1; flag lines where exposure > 10% of CET1 or > 5% of total assets.
• Net positions: include hedges, off-balance items, contingent liabilities, and intragroup funding.
• Data: pull 12 months of transaction-level flows and 6 months of intraday FX/settlement fail rates.

Run these three stress scenarios (apply to P&L, capital, and liquidity):

• Sudden-stop shock: cross-border inflows drop 40% over 3 months; domestic currency depreciates 30%; wholesale funding spreads widen +300 bps.
• Global risk-off: equities down 30%, credit spreads widen +250 bps, and emergent-market FX falls 25%.
• Local banking stress: deposit flight of 20%, short-term funding upsize +200 bps, and haircuts on collateral increase by 15 percentage points.

Here's the quick math: if your foreign exposure is $25 billion and CET1 is $4 billion, a 10% loss on that exposure equals $2.5 billion - over half your CET1.

Actions after scenarios:

• Reduce exposures where losses exceed 30% of CET1 within the scenario;
• Buy or extend hedges where FX or rate moves create >15% CET1 impact;
• Pre-arrange contingent funding lines equal to at least 10% of short-term external debt.

One-liner: map everything, stress it hard, then fix the biggest holes first.

Policy next step: calibrate buffers and coordination timelines for the next 12 months

You must set policy responses that are readable, time-bound, and reversible. Aim to finalize buffer calibration and coordination protocols inside a 12-month window, with staged actions and public triggers.

Recommended policy calendar:

• Month 0-3: publish a cross-border risk assessment and baseline metrics (external debt/GDP, net international investment position, FX mismatch ratios).
• Month 3-6: set macroprudential instruments - countercyclical capital buffer (CCyB) target range, FX reserve targets, and temporary limits. Use the CCyB up to 2.5 percentage points when inflows exceed sustainable thresholds.
• Month 6-9: run coordinated stress tests with key counterpart jurisdictions and agree on resolution lines and swap arrangements.
• Month 9-12: operationalize contingency funding lines, public communication rules, and an automatic review every quarter for 12 months.

Calibration guidance and numbers:

• Hold a country-level buffer equal to 25-50% of the expected peak outflow under the sudden-stop scenario (example: if peak outflow = $40 billion, buffer = $10-20 billion).
• Set minimum usable reserves to cover at least 6 months of probable net external financing needs for highly open economies.
• Apply temporary capital flow measures if cross-border inflows cause credit growth > national trend by > 6 percentage points of GDP within 12 months.

Coordination and governance:

• Appoint a cross-agency lead and a named international counterpartry (central bank or treasury) within 30 days.
• Agree on data-sharing templates and legal MOUs within 90 days; test them in a table-top exercise by month 6.
• Publish activation triggers (spreads, FX moves, flow declines) so markets know the rules.

One-liner: set clear buffers, timed reviews, and tested coordination so policy is predictable and fast.

Next steps and owners:

• Risk/Finance: deliver the cross-border exposure map and baseline stress runs by Day 30.
• Markets: propose hedging and contingent funding term sheets within 45 days.
• Regulators: finalize buffer calibration and MOUs for international coordination within 90 days.