Macroeconomic stability is of utmost importance to the Chinese government. After the world financial crisis, economic growth declined from the previous double-digit rates to 6.7% in the third quarter of 2018. Because of the COVID-19 crisis, GDP growth slowed to 2.3%. However, the real growth rate was probably much lower and perhaps even negative. This paper examines the nexus between investor sentiment and the insurers’ financial stability and, in addition, the moderating role of negative market conditions on the aforementioned relationship. Using a sample from the property–casualty insurance sector of the developed markets, our findings are twofold. First, we find that investors exhibit rational buying behaviour, and lower The coefficient of financial stability index is negative and significant in all countries. For example, a 1% increase in financial stability ceteris paribus, will decrease CO 2 emissions by 16.3% in Pakistan, 8.2% in India, 5.4% in Bangladesh, 1.3% in Nepal and 18.8% in Sri Lanka. The effect of economic growth on carbon emissions is found to be Similarly, macroeconomic stability appears to be an important prerequisite for ensuring that financial integration is beneficial for developing countries. In this regard, the IMF work in promulgating standards and codes for best practices on transparency and financial supervision, as well as sound macroeconomic frameworks, is crucial. The STLFSI4 measures the degree of financial stress in the markets and is constructed from 18 weekly data series: seven interest rate series, six yield spreads and five other indicators. Each of these variables captures some aspect of financial stress. Accordingly, as the level of financial stress in the economy changes, the data series are We hypothesized that geopolitical risk reduces bank stability. To test our hypothesis, we assembled annual bank-specific and macroeconomic, and geopolitical risk datasets covering the period 1999 to 2019. We find strong and consistent evidence that GPR is associated with higher bank frailty across a broad range of bank stability measures. About 155 countries have participated in the FSAP Program, and more than 300 FSAPs have been conducted since the inception of the program in 1999. This has helped client counties identify vulnerabilities in their financial systems and develop appropriate policy responses. The World Bank is a leader in delivering crisis-simulation exercises 1. Introduction. A financial stability of any country is an important factor in going to the world through increased international business, where the strength of completion in the market has led to interesting governments to think the conclusion of international trade agreements. These agreements will be increase economic activity, but this kR9zOK.