Navigating the Storm: Geopolitical Disruptions Reshaping Global Leadership in the Financial Sector
Main Article Content
Keywords
Geopolitical risk, financial sector leadership, banking stability, financial fragmentation, cross-border lending, ESG resilience, economic sanctions
Abstract
The contemporary global financial landscape is undergoing an unprecedented transformation driven by escalating geopolitical tensions, economic sanctions, and the fragmentation of international financial systems. This systematic literature review examines how geopolitical disruptions are fundamentally transforming global leadership in the financial sector. Adopting PRISMA guidelines, the study analyzed 156 peer-reviewed and gray literature records (2000–2025) retrieved from Scopus, Web of Science, EconLit, and Google Scholar, supplemented by policy reports and citation snowballing. The evidence reveals five interconnected transformations: the fragmentation of global financial infrastructure via sanctions; the rise of regional blocs challenging Bretton Woods governance; the redefinition of leadership competencies toward geopolitical literacy; the weaponization of technology through CBDCs and techno-nationalism; and the erosion of cooperative regulatory frameworks. The review demonstrates that these disruptions propagate through interconnected transmission channels such as market volatility and operational security risks creating emergent systemic threats. While fragmentation generates efficiency losses, it simultaneously catalyzes resilience investments and institutional innovations. However, asymmetric profitability dynamics advantage large institutions, while African economies face acute challenges from externally imposed de-risking. Ultimately, financial leadership is evolving from the specialized technocrat toward a strategic generalist capable of integrating quantitative rigor with geopolitical sophistication. The review concludes that these disruptions are structurally embedded, requiring institutions to cultivate adaptive capacities, strategic foresight, and resilience engineering to navigate persistent turbulence.
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