Posted on October 5, 2010 by iMFdirect
By José Viñals
It would be unfair for any assessment of global economic and financial stability not to acknowledge that tremendous progress has been made in repairing and strengthening the financial system since the onset of the global crisis.
Still, the key message from the IMF’s October 2010 Global Financial Stability Report (GFSR) is clear. Progress toward global financial stability has suffered a setback over the past six months—the financial system remains the Achilles’ heel of the economic recovery. (more…)
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, Financial Crisis, Financial regulation, Financial sector supervision, International Monetary Fund | Tagged: bank restructuring, banking system, capital inflows, debt sustainability, economic recovery, financial reform, Financial regulation, financial sector vulnerabilities, financial supervision, GFSR, Global Financial Stability Report, regulatory reform, sovereign risks | 2 Comments »
Posted on October 3, 2010 by iMFdirect
By José Viñals
Fearful financial markets, an uncertain growth outlook, fiscal anxieties, long unemployment lines….no other financial crisis since the Great Depression has led to such widespread dislocation in financial markets, with such abrupt consequences for growth, trade, and employment.
The crisis exposed fundamental weaknesses in many areas of the world economy, the most obvious being dramatic deficiencies in the regulation and supervision―nationally and internationally―of financial institutions and markets.
On the bright side, the crisis has provided the impetus for a major overhaul of the financial regulatory system. So, are we making the most of this opportunity to fix the system? (more…)
Filed under: Economic Crisis, Financial Crisis, Financial regulation, Financial sector supervision, IMF, International Monetary Fund | Tagged: Basel Committee on Banking Supervision, cross-border exposures, financial crisis, financial institutions, financial markets, Financial regulation, financial regulatory system, financial stability contribution, financial supervision, macroprudential regulations, Microprudential regulations, resolution mechanisms | 2 Comments »