Global Financial Stability Report

Global Financial Stability Report, April 2015: Navigating Monetary Policy Challenges and Managing Risks

April 15, 2015

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Global Financial Stability Report, April 2015: Navigating Monetary Policy Challenges and Managing Risks, (USA: International Monetary Fund, 2015) accessed November 23, 2024

Also available in: العربية, español, français, русский, 中文

Summary

The current report finds that, despite an improvement in economic prospects in some key advanced economies, new challenges to global financial stability have arisen. The global financial system is being buffeted by a series of changes, including lower oil prices and, in some cases, diverging growth patterns and monetary policies. Expectations for rising U.S. policy rates sparked a significant appreciation of the U.S. dollar, while long term bond yields in many advanced economies have decreased—and have turned negative for almost a third of euro area sovereign bonds—on disinflation concerns and the prospect of continued monetary accommodation. Emerging markets are caught in these global cross currents, with some oil exporters and other facing new stability challenges, while others have gained more policy space as a result of lower fuel prices and reduced inflationary pressures. The report also examines changes in international banking since the global financial crisis and finds that these changes are likely to promote more stable bank lending in host countries. Finally, the report finds that the asset management industry needs to strengthen its oversight framework to address financial stability risks from incentive problems between end-investors and portfolio managers and the risk of runs due to liquidity mismatches.

Subject: Asset and liability management, Asset management, Bank credit, Banking, Emerging and frontier financial markets, Financial institutions, Financial markets, Financial sector policy and analysis, Financial sector stability, Foreign banks, Mutual funds

Keywords: Africa, Asia and Pacific, Asset, Asset management, Asset market, Asset price dynamics, Bank activity, Bank assets, Bank level, Banking linkage, Bond market, Capital definition, Caribbean, Central bank, Crisis bank-capital-to-total-assets ratio, Cross-border lending, Debt ratio, Economic risk, EMEA bank, Emerging and frontier financial markets, Emerging market corporation, Europe, Financial sector stability, Fixed-income market, Foreign banks, Fund flow, Funding cost, General-equilibrium asset price model, GFSR, Global, Investment vehicle, Liability structure, Market, Middle East, Mutual funds, Parent bank, Private equity, Productivity-enhancing investment, Quantitative easing, Share price, U.S. dollar

Publication Details

  • Pages:

    162

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Global Financial Stability Report No. 2015/001

  • Stock No:

    GFSREA2015001

  • ISBN:

    9781498372930

  • ISSN:

    1729-701X

Supplemental Resources

Notes

Executive Summaries also available in: Arabic, Chinese, French,Russian, and Spanish