The World Bank is urging developing nations to strengthen their financial systems as a key component of sustainable economic growth. According to a recent report, robust financial infrastructure is essential for attracting foreign investment, managing economic volatility, and fostering overall stability. The Bank emphasized that these improvements are vital for long-term development and poverty reduction.

The report highlights specific areas that require attention, including regulatory frameworks, banking supervision, and capital market development. It suggests that governments should prioritize creating transparent and accountable institutions to build confidence among investors and the public. Furthermore, the World Bank is offering technical assistance and financial support to countries committed to undertaking these reforms.

Several developing nations have already made significant progress in strengthening their financial systems. However, the report stresses that continued efforts are needed to ensure that these systems are resilient to external shocks and capable of supporting inclusive growth. The World Bank remains committed to partnering with developing countries to achieve these goals.