A systematic and bibliometric review of financial stability: Advancements, current status, and future research agenda

Financial systems support investment and economic growth, but they remain vulnerable to nonlinear stress and contagion. This review examines 23,447 peer-reviewed publications on financial stability from 1908 to 2024. It combines topic modeling, bibliometric mapping, and structured expert validation to identify seven themes: risk factors, policy and regulation, crisis and contagion, institutional and market dynamics, emerging trends and technologies, measurement and analysis tools, and cross-cutting influences. The findings show that shocks can arise from different sources but often intensify through four recurring transmission mechanisms: deteriorating funding conditions, declining collateral values, leverage constraints, and changes in risk premia. The review further shows that measurement practices and technological infrastructures shape incentives, information flows, and the speed at which stress can spread across the financial system. The thematic structure was assessed using alternative model specifications, coherence measures, bibliometric evidence, and expert review. The findings have direct implications for financial-stability policy. Macroprudential buffers and liquidity facilities should be calibrated to the main transmission mechanisms through which vulnerabilities can intensify. Supervisory frameworks should encompass relevant non-bank and digital intermediaries. Surveillance systems should also provide timely and interpretable information to support intervention when risks build across markets and institutions. The review identifies market-based finance, central bank digital currencies (CBDCs), stablecoins, and climate-related risks as priority areas requiring more integrated treatment in financial-stability research and policy. Overall, the study consolidates a fragmented body of research, identifies priorities for future inquiry, and treats financial stability as a dynamic condition requiring continued monitoring, adaptation, and coordination.