Why Record-High Conflicts Threaten The Global Banking System
Key takeaways
- Banking & Insurance Why Record-High Conflicts Threaten The Global Banking System By Mayra Rodriguez Valladares,
- TEHRAN, IRAN - MARCH 8: Plumes of smoke rise over the oil depot tanks hit by joint Israel-U.S. over night in a station north west of the capital on March 8, 2026 in Tehran, Iran.
- In 2025, the world recorded 65 active state-based armed conflicts—the highest count since the Uppsala Conflict Data Program (UCDP) began systematically tracking global violence in 1946.
Banking & Insurance Why Record-High Conflicts Threaten The Global Banking System By Mayra Rodriguez Valladares,
TEHRAN, IRAN - MARCH 8: Plumes of smoke rise over the oil depot tanks hit by joint Israel-U.S. over night in a station north west of the capital on March 8, 2026 in Tehran, Iran. Photo by Kaveh Kazemi/Getty Images Getty Images With 65 active state-based wars in 2025—the most since World War II—and battlefield deaths surging to a 30-year high, bank regulators and legislators face an urgent question: how long before the world's financial infrastructure fractures under the weight of simultaneous, compounding geopolitical shocks?
The numbers are staggering. In 2025, the world recorded 65 active state-based armed conflicts—the highest count since the Uppsala Conflict Data Program (UCDP) began systematically tracking global violence in 1946. More alarming still is the composition: direct interstate wars, the most financially destabilizing category, doubled in a single year from four to eight, matching a post-WWII record that stands as a red flag for anyone managing sovereign debt exposure or cross-border credit risk.