The Managing Director of the IMF, Kristalina Georgieva (photo), warned of the increase this Sunday (26). new risks to financial stability after the recent turmoil in the banking sector.
That’s what the head of the IMF said at a conference in Beijing uncertainties in the world economy keep going “exceptionally high’, with global economic growth slowing less than 3% this year due, among other things, to the war in Ukraine and the “effects” of the pandemic.
“Risks to financial stability have increased at a time of higher debt,” Georgieva told the China Development Forum.
“The rapid transition from a longer period of low interest rates to the much higher interest rates needed to fight inflation inevitably leads to tensions and vulnerabilities, as we have seen with recent developments in the banking sector.”
The global financial sector was rocked by the collapse this month Silicon Valley Bankwhich also led to the bankruptcy signature bank and the Takeover of Credit Suisse by the UBS Group.
“We have also seen political actors react decisively to financial stability risks (…) these measures have reassured markets to some extent, but uncertainty remains high and reinforces the need for vigilance,” the IMF chief added.