Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Head of International Monetary Fund warns of increased risks to stability of financial system after weeks of banking sector turmoil

by March 27, 2023
March 27, 2023
Head of International Monetary Fund warns of increased risks to stability of financial system after weeks of banking sector turmoil

The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector turmoil.

It comes as markets brace for another week of volatility following panic over the health of Deutsche Bank.

IMF managing director Kristalina Georgieva said uncertainty in the global economy remained ‘exceptionally high’ and 2023 was set to be ‘another challenging year’.

Global growth was set to slow to under 3 per cent as war in Ukraine, higher interest rates and long-term ‘scarring’ from Covid weighed on activity.

Georgieva told a conference in Beijing that chaos in banking markets was due to recent interest rate hikes. She said: ‘The rapid transition from a prolonged period of low interest rates to much higher rates – necessary to fight inflation – inevitably generates stresses and vulnerabilities, as evidenced by recent developments in the banking sector in some advanced economies.’

Despite this, Georgieva said policy-makers and central bankers had acted ‘decisively’ to counter risks to the financial system, but warned high uncertainty meant there was a ‘need for vigilance’.

It followed another dramatic episode for the banking sector at the end of last week.

Deutsche Bank shares tumbled amid fears it could be the next to fail, after an emergency takeover of Credit Suisse by Swiss rival UBS. It led German chancellor Olaf Scholz to alleviate concerns about Deutsche Bank, saying it was ‘very profitable’ and there was ‘no reason to be concerned’.

It remains to be seen whether the comments will be enough to calm market panic over the banking sector, which has been disturbed since the collapse of US lender Silicon Valley Bank (SVB) earlier this month.

Three US lenders have collapsed in March – SVB, Signature and Silvergate – while larger Wall Street rivals have pumped £25billion into San Francisco-based First Republic Bank to prevent more dominos from falling.

Georgieva also warned that rising geopolitical tensions risked splitting the world into rival economic blocs. She said this would leave ‘everyone poorer and less secure’ and the global economic outlook was ‘likely to remain weak’ over the medium term.

Read more:
Head of International Monetary Fund warns of increased risks to stability of financial system after weeks of banking sector turmoil

0
FacebookTwitterGoogle +Pinterest
previous post
HSBC agrees to delay closure of a last branch in town until alternative banking arrangements are in place
next post
Ovo launches energy deal below government price cap

You may also like

Business groups welcome plans to speed up planning...

July 27, 2023

US wants UK to open up its agriculture...

October 4, 2023

Third of public sector workers ready to resign

October 31, 2022

British Airways to cancel further flights up to...

August 23, 2022

Why Do Dogs Get the Zoomies: The Science...

March 21, 2023

Getting To Know You: Hannah Fitzsimons, CEO, Cashflows

July 31, 2024

F1 star Sebastian Vettel becomes the lead investor...

March 20, 2023

Next and Frasers Group vying to acquire troubled...

April 9, 2024

Plans To Help Cut & Save On Energy...

October 24, 2022

Marks & Spencer set to open 20 new...

January 16, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved