The COVID-19 pandemic became the most disruptive global shock to financial stability. Unlike traditional financial crises driven by credit or asset bubbles, the pandemic originated outside the financial system but rapidly spread through macroeconomic channels, supply chain disruptions, and behavioral responses. Governments and central banks responded with historically large policy interventions and coordinated international actions. These measures helped to stabilize markets, prevent a systemic collapse, and support credit flows to households and firms. However, they also generated side effects, including increased moral hazard, asset price inflation, and higher public and private debt burdens. At the same time, the crisis accelerated the rise of environmental, social, and governance (ESG) investing, as firms with stronger ESG performance proved more resilient, attracted additional investor capital, and often outperformed their peers across many markets.