Global financial stability progress suffers setback: IMF

11:15, October 06, 2010      

Email | Print | Subscribe | Comments | Forum 

Overall progress toward global financial stability has suffered a setback since this spring, but emerging market economies remain bright spots of global financial investment, according to a report released by the International Monetary Fund (IMF) on Tuesday.

"The turmoil in sovereign debt markets in Europe highlighted increased vulnerabilities of bank and sovereign balance sheets," the Washington based international institution said in its biannual Global Financial Stability Report (GFSR) before the IMF and its sibling institution World Bank annual meeting held this weekend.

The report said that the banking system continues to build on the ongoing economic recovery. IMF estimate of total crisis-related bank writedowns and loan provisions between 2007 and 2010 has now fallen from 2.3 trillion U.S. dollars in the April 2010 GFSR to 2.2 trillion dollars.

However, sovereign risks remain elevated as markets continue to focus on high public debt burdens, unfavorable growth dynamics, and linkages to the banking system.

"Emerging markets have become relatively more attractive compared with advanced economies because of their better fiscal fundamentals, stronger growth outlooks and higher yields," said the report.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion