OECD Business and Finance Outlook 2019
Strengthening Trust in Business
The OECD Business and Finance Outlook is an annual publication that presents unique data and analysis on the trends, both positive and negative, that are shaping tomorrow’s world of business, finance and investment. Using analysis from a wide range of perspectives, this year’s edition considers the importance of public trust in business and finance, offering a conceptual approach to understanding facets of trust in finance, investment and business with respect to economic value, fairness and integrity of conduct, as well as alignment with societal values. The Outlook provides an assessment of factors that contributed to a deterioration of trust during the Global Financial Crisis; reviews recent developments that could contribute to a renewed erosion of trust; and, offers policy considerations to help strengthen public trust in business and finance.
Trust and financial markets
This chapter considers trust in financial markets by exploring factors that contribute to public trust in markets, post-crisis developments that have contributed to help ameliorate the loss in public trust provoked by the financial crisis, and potential risks to the financial sector that could erode trust in the future. The chapter considers developments in sovereign, corporate and bank debt markets, and the potential for unexpected losses from high leverage in less benign macro and market conditions. It also explores the growth and benefits of market-based finance, and considers whether structural features of certain products could contribute to market risks and amplification of stress in less liquid fixed-income markets.
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