Non-US banks have $1.4 tn at risk in the event of crisis, warns IMF

Surge in liabilities denominated in US dollars could make the banks' home economies more vulnerable, says IMF report.

Should a new crisis erupt on world markets, non-US banks will struggle to cover their debts, which have increased since the global financial crisis, said the International Monetary Fund Friday.

And despite efforts to shore up the US banking system -- in some cases because of those reforms -- the surge in liabilities denominated in US dollars could make the banks' home economies more vulnerable, the IMF said in a new report.

The findings in a section of the Global Financial Stability Report show that the "funding gap" of non-US banks--the difference between assets and debt held in US dollars