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Global Financial Stability Statement


A Report by the Monetary and Capital Markets Department on Market Developments and Issues


Last Updated Tuesday April 22 2014

April 2014: 2014 April Global Financial Stability Report (GFSR) estimates transitions ambitious that the global financial system is currently undergoing on the road to greater stability. Chapter 1 ensures that these transitions are far from complete, and stable conditions are far from normal. For the advanced and emerging economies, is a shift from liquidity-driven lucky in growth markets driven requires a number of elements. The report examines these elements, including: improved monetary policy PHILIPPINES which avoids risks to financial stability; financial balance in the development of market economies from outside the tightening financial situation and high levels of corporate debt; further development in transition from fragmentation to tight integration of the euro zone; and the success of Abenomics in Japan to provide a remarkable growth and stable inflation. Chapter 2 examines the role of soil structure investors and local financial systems for the stability of portfolio flows to emerging market and the estimated savings. Chapter 3 examines the issue of too important to fail, and provides new estimates of the grant funding received by alluding systemically important financial organizations.

October 2013: The October 2013 Global Financial Stability (GFSR) Report learns current risks facing the global financial system as it undergoes a number of transitions in alongside the path to greater financial stability. The United States may soon move to less favorable monetary policies and higher long-term interest rates as recovery gains ITS basis. Growing markets face a transition to more volatile external Circumstances and higher risk bonuses. Japan is moving toward the new "Abenomics" policy regime, and the euro area is running strong and blackberries to a safer financial sector. Finally, the global banking system is phasing in robust regulatory norms. Chapter 1 examines the challenges and risks of each of These transitions. Chapter 2 looks at the Measures by policymakers to regenerate weak credit growth, Which Has Been seen by many as a first reason behind the slow economic rehabilitation. The chapter Argues That policies are most forceful if they target the compelling That underlie the weakness in credit. But it discrete policymakers to be aware of the fiscal costs and potential impact for financial stability of credit-supporting policies. Chapter 3 examines how banking funding structures ground for financial stability and the potential influence of various regulatory reformations. It follows That careful implementation of reformation Efforts are essential To ensure that financial stability benefits become true.

April 2013: The April 2013 Global Financial Stability Report learns present risks facing the global financial system and policy transformations that may mitigate these. The April 2013 statement analyzes the key problems facing financial and nonfinancial corporations as they continue to repair their balance reports and unwind public and private debt loop. Chapter 1 also examines short- and medium-term stability risks in the euro area and the sensitivity of developing market economies to persistent capital injections. Chapter 2 takes a closer look at whether sovereign credit default swaps markets are good indicators of sovereign credit risk. Chapter 3 reports on non-standard monetary policy in some depth, taking into account the policies pursued by the Federal Reserve, the Bank of England, the Bank of Japan, the European Central Bank, and the U.S. Federal Reserve.

October 2012: The October 2012 Global Financial Stability Report (GFSR) finds raised risks to the global financial system, with the euro area crisis the base source of concern. The report insists policymakers to act now to restore surety, reverse capital flight, and reintegrate the euro zone. In both Japan and the United States, steps are needed toward medium-term fiscal regulations. Emerging market economies have successfully directed global shocks thus far, but need to safe against future shocks while managing a slowdown in growth. This GFSR also learns whether regulatory reforms are pushing the financial system in the right direction, and finds that progress has been limited, partly because many reforms are in the early stages of implementation and partly because crisis intervention measures are still in use in a number of economies, delaying the movement of the financial system onto a safer path. The final chapter assesses whether proper aspects of financial structure enhance economic results. Indeed, some structural features are connected with better outcomes. In particular, financial links made up of high-quality capital and truly liquid assets usually to be associated with better economic performance.

April 2012: The April 2012 Global Financial Stability Report assesses changes in risks to financial strength over the past six months, focusing on sovereign sensitivity, risks stemming from private sector deleveraging, and estimating the continued resilience of developing markets. The report investigates the implications of recent reforms in the financial system for market perception of safety assets, and studies the growing public and private costs of grew longevity risk from aging populations.

September 2011: The September 2011 Global Financial Stability Report warns that the threat to global financial stability have increased dramatically in recent months, during which heavy debt burden and prospects of slow growth in many advanced economies associated with a series of shocks to the global financial system. Emerging markets, despite the growth prospects of the brightest, face the risk of revision sharp and so must avoid the accumulation of financial sensibility. The report also informs, as the crisis has moved into its fifth year, has entered a new phase in which the political diversity within and across economies are impeding progress to address the legacy of the crisis. The studies show how the environment low interest rate constant and high uncertainty are driving the capital base of long-term, real money investors departmental, and discovers that these investors have moved to the surety and liquidity. As part of its ongoing role in finding a way to escape future crises, the report is based on variables that can serve as leading indicators of financial crisis and examines how the use of counter-cyclical capital buffer can help to mitigate the destabilizing cycles.

April 2011: Despite ongoing economic recovery and adjustments in global financial stability, structural weaknesses and sensitiveness remain in several important financial systems. The April 2011 Global Financial Stability Report highlights how risks have mutated over the past six months, follows up the sources and channels of financial distress with an emphasis on sovereign risk, notes the pressures arising from capital inflows in developing economies, and considers policy proposals under attention to mend the global financial system.

October 2010: The global financial system is still in a period of considerable uncertainty and still is the 'Achilles' heel of the economic recovery. Although the ongoing recovery is expected to result in a step-by-step strengthening of balance sheets, progress toward financial stability has experienced a setback since the April 2010 GFSR. The current report sets in top how risks have changed over the last six months, follows up the sources and channels of financial distress with an emphasis on sovereign risk, and provides a symposium of policy proposals under consideration to mend the global financial system.

April 2010: Risks to global financial stability have allayed as the economic recovery has got steam. But policies ought to reduce arbiter vulnerabilities, ensure a calm deleveraging process, and complete the regulatory agenda. The report examines systemic threat and the redesign of financial regulation; the role of central counterparties in making over-the-counter derivatives surety; and the operability of the expansion of global liquidity on recipient economies.

October 2009: This GFSR chronicles the evolution of the path toward reestablishing democratic credit intermediation and the near-term risks that could terminate its restoration, including the rising burden of sovereign financing. The report is aimed towards how to restart securitization markets and the pitfalls if done not correctly. The effectiveness of unconventional public sector interference and the principles for disengagement are considered. The statement also discusses the shape of medium-term policies that aim to rebuild the financial system to make it more resilient and stable.

April 2009: The global financial system remains under hard stress as the crisis broadens to include households, corporations, and the banking sectors in both advanced and emerging market countries. In the time of stability, the Global Financial Stability Report aims to prevent crises by highlighting policies that may smooth systemic risks, thus, investing to financial stability and sustained economic growth. In the current crisis, the statement traces the supply-sources and channels of financial distress and ensures policy advice on mitigating its influence on economic activity, stemming disease, and mending the global financial system.

October 2008: With financial economies worldwide facing raising turmoil, internationally coherent and clear policy measures will be required to restore confidence in the global financial system. The process of restoring an orderly system will be challenging, as an important deleveraging is both necessary and invariant. It is against this challenging and still evolving background plane that the October 2008 Global Financial Stability Report borders recent events to suggest potential policy measures that could help address the current circumstances.

April 2008: The events of the past six months have demonstrated the weakness of the global financial system and set up fundamental questions about the effectiveness of the response by private and public sector establishments. The report evaluates the sensitiveness that the system is passing and offers tentative conclusions and policy experience. The report reflects information available up to March 21, 2008.

September 2007: Since the April 2007 Global Financial Stability Report (GFSR), global financial resistance has endured an important test. Credit and market risks have grew up and markets have become more volatile. Markets admit the range to which credit discipline has spoiled in recent years - most notably in the U.S. nonprime mortgage and leveraged loan markets, but also in other related credit markets.

April 2007: This particular issues demonstrate in part on a series of discussions with commercial and investment banks, securities firms, asset administrating companies, insurance companies, pension funds, stock and futures exchanges, hedge funds, credit rating agencies, and scientific researchers, as well as regulatory and other public authorities in major financial centers and countries. Contributions from Craig Martin and Kevin Roth (Association for Financial Professionals) in the conducting of a prospect are gratefully recognized. The report reflects the data available up to February 6, 2007.

September 2006: This particular issue draws, in part, on a series of observes with commercial, investment and financial institutions, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, credit rating agencies, and academic researchers, as well as regulatory and other public authorities in major financial centers and countries. The report disposes the information available up to July 14, 2006.

April 2006: This special issue draws, in part, on a series of informal discussions with commercial and investment banks, securities firms, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, and credit rating agencies, as well as regulatory local and general governments and academic researchers in many major financial centers and countries. The report reflects information available up to February 10, 2006.

September 2005: This particular issue draws, in part, on a series of informal argues with commercial and investment banks, securities firms, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, and credit rating agencies, as well as regulatory authorities and academic researchers in many financial centers and countries. The report demonstrates information available up to July 22, 2005.

April 2005: This particular issue draws, in part, on a series of informal discussions with commercial and investment banks, securities firms, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, and credit rating agencies, as well as regulatory authorities and academic researchers in many financial centers and countries. The report demonstrates information accessible up to February 16, 2005.

September 2004: This issue draws, in part, on a series of non-formal discussions with commercial and investment banks, securities firms, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, and credit rating agencies in Japan, Colombia, Mexico, Singapore, Germany, Poland, France, Hong Kong SAR, Italy, the Netherlands, Switzerland, the United Kingdom, Canada and the United States. The report reflects information available up to July 30, 2004.

April 2004: This issue draws, in part, on a series of non-formal discussions with commercial and investment banks, pension funds, securities firms, asset management companies, insurance companies, stock and futures exchanges, and credit rating agencies in South Africa, France, Russia, Brazil, Chile, China, Colombia, Germany, Hong Kong SAR, Hungary, Japan, Korea, Mexico, Poland, Singapore, Thailand, the United Kingdom, and the United States. The report reflects mostly information available up to March 8, 2004.

September 2003: This issue draws, in part, on a series of informal discussions with commercial and investment banks, pension funds, securities companies, asset management companies, insurance companies, stock and futures changes, and credit rating agencies in Hungary, Brazil, Chile, China, Hong Kong SAR, Poland, Russia, Singapore, South Africa, and Thailand, as well as the major financial centers. The report reflects mostly data accessible up to August 4.

March 2003: This issue of the Global Financial Stability Report marks the beginning of a new semiannual frequency for the publication. This issue draws, in part, on a series of informal discussions with commercial and investment banks, securities firms, asset management companies, insurance companies, pension funds, stock and futures exchanges, and credit rating agencies in the United States, Poland, China, Brazil, Chile, Hong Kong SAR, Hungary, Japan, Poland, Russia, Singapore, Thailand, the United Kingdom. The report reflects mostly information available up to February 28, 2003.

December 2002: This is the fourth issue of the Global Financial Stability Report, a quarterly issue published in March 2002 to get an idea on a regular estimation of world financial markets and to identify potential systemic gaps that could lead to decline. This report reflects mostly information available up to November 4, 2002.

June 2002: This is the second edition of the Global Financial Stability Report. This particular issue draws, in part, in a series of informal talks with the investment banking business, securities firms, asset management companies, insurance companies, pension funds, archives and futures exchanges and credit rating agencies China, Germany, Hong Kong SAR, Hungary, Italy, Japan, Poland, Singapore, Switzerland, Thailand, United Kingdom and United States. The report mainly reflects the information available up to 10 May 2002.

September 2002: This is the third issue of the Global Financial Stability Report, a quarterly issue showed in March 2002 to provide a regular assessment of global financial markets and to identify potential systemic gap that could lead to crises. By sharp attention to potential fault lines in the global financial system, the report seeks to run a role in preventing crises before they erupt, thereby contributing to global financial stability and to the prosperity of the IMF's member countries.

March 2002: Reviews recent developments in global financial markets and explores the potential effect of the market of financial imbalances and go deterioration in credit quality. It also focuses on strengthening the mechanisms of transfer of the threats of credit - such as credit derivatives and collateralized debt obligations - as a medium for the distribution of credit risks. The report produces two essays: one on the first models of the alarm system and a more alternative means of funding for developing countries.