Global Financial Stability Report, October 2023: Financial and Climate Policies for a High-Interest-Rate Era

Risks to global growth remain skewed to the downside as inflation remains elevated and interest rates are set to stay higher for longer.
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Volume/Issue: Volume 2023 Issue 002
Publication date: October 2023
ISBN: 9798400249686
$50.00
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Topics covered in this book

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Banks and Banking , Finance , Inflation , Money and Monetary Policy , Environmental Economics , soft landing , downside risks , emerging market economies , bank supervision , global stress test , climate finance , IMF Resilience and Sustainability Trust

Summary

Chapter 1 assesses that risks to global growth are skewed to the downside, similar to the assessment in the April 2023 Global Financial Stability Report. Cracks in the financial system may turn into worrisome fault lines should a soft landing of the global economy hoped for by market participants does not materialize. Chapter 2 homes in on the global banking system, providing a fresh assessment of vulnerabilities in a higher-for-longer environment, using an enhanced global stress test and a set of newly developed market-based indicators. In response to the vulnerabilities that are uncovered, enhancements to supervisory practices and tightening of regulatory standards are proposed. Chapter 3 notes that a broad mix of policies is required to unlock the private capital necessary to cover climate mitigation investment needs in emerging market and developing economies.