The goal of this inaugural Global Financial Development Report is to contribute to the evolving debate on the role of the state in the financial sector, highlighted from the perspective of development. The report is aimed at a broad range of stakeholders, including governments, international financial institutions, nongovernmental organizations, think tanks, academics, private sector participants, donors, and the wider development community. The report offers policy advice based on research and lessons from operational work. The report emphasizes that the state has a crucial role in the financial sector—it needs to provide strong prudential supervision, ensure healthy competition, and enhance financial infrastructure. Regarding more direct interventions, such as state ownership of banks, the report presents new evidence that state involvement can help in mitigating adverse effects of a crisis.