Arab Today, arab today imf warns of 38 tln in market losses due to global tensions
Last Updated : GMT 13:22:37
Arab Today, arab today
Arab Today, arab today

IMF warns of $3.8 tln in market losses due to global tensions

Arab Today, arab today

Arab Today, arab today IMF warns of $3.8 tln in market losses due to global tensions

The International Monetary Fund's (IMF)
Washington - KUNA

The International Monetary Fund's (IMF) Global Financial Stability Report urged "increased vigilance" on Wednesday, as the rise of non-bank lending and loose monetary policies could result in global "flare-ups" due to "excesses in financial risk-taking." Political instability and rising interest rates could result in a USD-3.8-trillion loss for investors, the IMF warned in its report.
"The increasing global synchronization of asset prices and volatilities, combined with rising market and liquidity risks in the shadow banking sector, could amplify the impact of shocks on asset prices," the report explained. "This may result in sharper price falls and more market stress." Speaking at a press conference this morning, Financial Counsellor and head of the IMF's Monetary and Capital Markets Department, Jose Vinals, affirmed that "the best way to address the new global imbalance between economic and financial risk-taking is to adopt policies that transmit the benefits of monetary policy to the real economy, and to address financial excesses through well-designed micro and macroprudential measures." Using a sample of 300 "advanced economy" banks, the report found that "many banks have the potential capacity to supply credit, although there is a group of institutions, mostly from the euro area, that would require a high level of re-pricing to generate sustainable profits and rebuild capital buyers." "Such a re-pricing may not be feasible, especially if done on a stand-alone basis and not followed by other market participants," the report added. "This could limit these banks' capacity to meet credit demand, particularly in those countries that are in greatest need of a recovery in credit, and create headwinds for the economic recovery." Vinals emphasized that "where banks have no future and are not viable, they need to think about exiting and consolidation. This exiting should also be facilitated by regulators." "Things look better in the United States and Japan, but less so in Europe and in emerging markets," the report said.
It made three recommendations for improved financial policy.
First, the IMF said banks ought to "fundamentally adjust their business models to help improve the flow of credit to the economy," and promote "safe sources" of non-bank lending.
Second, greater oversight is needed. "Comprehensive monitoring and reporting of leverage in nonbank sectors and in emerging market companies would also help identify potential vulnerabilities," the IMF noted.
Third, policymakers must not only collect the data necessary to monitor financial risk-taking, but they should also "have an explicit mandate to act when needed and, equally important, the courage to act even if measures are highly unpopular".

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf warns of 38 tln in market losses due to global tensions Arab Today, arab today imf warns of 38 tln in market losses due to global tensions

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people

GMT 10:46 2017 Wednesday ,29 March

Japan plans to launch Intelligent Transport Solutions

GMT 05:50 2017 Wednesday ,29 March

Venezuela to launch new exchange rate next week

GMT 05:05 2017 Wednesday ,29 March

India reintroduces 10% tax on wheat imports

GMT 22:00 2017 Tuesday ,28 March

Egypt, India mull beefing up trade, investments

GMT 21:38 2017 Tuesday ,28 March

45 investment disputes reviewed

GMT 13:26 2017 Tuesday ,28 March

Brexit offers investment opportunities

GMT 13:16 2017 Tuesday ,28 March

Pressure grows on Nigeria's central bank governor
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday