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Global financial stability has improved, but risks ahead: IMF

A prolonged search for yield has raised the sensitivity of the financial system to market and liquidity risks

Reuters  |  Washington 

The global economic recovery has strengthened financial stability but easy monetary and financial conditions against a backdrop of sluggish inflation are elevating medium-term risks, the International Monetary Fund said on Wednesday. The IMF, whose autumn meetings with the World Bank get underway in Washington later this week, also noted risks are rotating from banks, which have fortified their balance sheets, to financial markets as credit spreads compress, volatility declines and asset prices rise. "While increased risk appetite and search for yield are a welcome and ...

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First Published: Wed, October 11 2017. 18:31 IST