The president of the International Monetary Fund, Kristalina Georgieva, warned this weekend about the implications of the recent banking crisis on global financial stability.
During her intervention at the China Development Forum, in Beijing, Georgieva referred to the possible risks for the world economy of the bankruptcy of banks in the United States and Europe.
The IMF chair noted: “At a time of rising debt levels, the rapid transition from a prolonged period of low interest rates to the much higher rates needed to combat inflation inevitably creates stresses and vulnerabilities, as evidenced by the recent developments in the banking sector in some advanced economies”.
She also highlighted the timely action of the governments of the United States and Switzerland in the face of the crisis presented by the Silicon Valley Bank and Credit Suisse.
However, she admitted that the bankruptcy of these financial institutions calls for vigilance to contain a domino effect, in addition to providing confidence to citizens.
M.Pino
Source: Portafolio
(Reference image source: Oren Elbaz, Unsplash)
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