September 21, 2011
The International Monetary Fund warned on Wednesday that time was running out to tackle weaknesses in the global financial system following a substantial increase in risks to stability over the past few months.
In its half-yearly Global Financial Stability Report (GFSR), the Fund said that the recent turmoil in markets was the result of investors losing patience with the inadequacy of reforms since the start of the crisis more than four years ago.
“Financial stability risks have increased substantially over the past few months. Weaker growth prospects adversely affect both public and private balance sheets and heighten the challenge of coping with heavy debt burdens,” the IMF said, adding that the crisis had moved into a new, more political phase.
“Risks are elevated, and time is running out to tackle vulnerabilities that threaten the global financial system and the ongoing economic recovery. The priorities in advanced economies are to address the legacy of the crisis and conclude financial regulatory reforms as soon as possible in order to improve the resilience of the system.”
This article was posted: Wednesday, September 21, 2011 at 7:42 am