IMF Releases The Latest Global Financial Stability Report

< p > on the 11 day of this month, on the eve of the International Monetary Fund (IMF) and the world bank's spring annual meeting, IMF's fresh global financial stability report provides a very interesting topic for discussion at this conference -- how the global financial system should deal with the challenge that is undergoing challenges.

According to the report, although the global financial stability has been enhanced, the shift from the liquidity driven market to the market driven by economic growth is far from complete, and the financial stability has not yet returned to normal.

In the past 6 months, the financial stability of the developed economies has generally improved, while the financial stability of the emerging economies has deteriorated.

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After the P financial crisis in 2008, low interest rates in developed economies created loose financial conditions, making many economies dependent on the support of "mobile crutches".

Now, 5 years after the outbreak of the financial crisis, the global economy is gradually showing the double engine pattern of the East and the West.

Marked by the gradual withdrawal of QE from the Federal Reserve, some unconventional monetary easing measures are fading away.

Under such circumstances, the global financial system should gradually get rid of the dependence on loose monetary environment and pition to the environment of self-sustaining growth.

In the latest report, IMF pointed out that in order to successfully shift from the "liquidity driven" market to the "economic growth driven" market, developed economies and emerging market economies need to have a series of factors, including: the normalization of the US monetary policy, avoiding the risk of financial stability; the emerging market economies achieving financial rebalancing under the tightening of external financial conditions; the euro area has made more progress in the process of separating from the state to solid integration; and Japan has successfully implemented "ampere economic policy" to achieve sustained economic growth and stable inflation.

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Compared with the US, Europe, Japan, and a href= "http://www.91se91.com/news/index_cj.asp" > emerging economies < /a >, the United States has made the most progress in the process of gradually realizing self-sustaining economic growth, but its behavior of reducing the unconventional monetary policy has also brought great spillover effects to other developed economies and emerging economies. P

The report believes that the US economy has clearly revealed the green shoots of recovery, and its economic pformation poses a number of challenges to financial stability.

For example, the "seeking income" behavior is constantly extending, the leverage of the company departments is rising, and some credit standards are being weakened.

The weakening of market liquidity and the rapid increase of investment instruments which are easily affected by the payment risk will expand the impact of financial and economic shocks.

"During this pition period, the easing of US monetary policy may lead to the adjustment of portfolio and the re pricing of risk, which will have a great spillover effect on developed economies and emerging market economies."

The report says.

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< p > Japan, the report thinks that it is necessary to continue to carry out the loose a href= "http://www.91se91.com/news/index_cj.asp" > the monetary policy < /a >, but this is not enough to restore the economic vitality of the recovery.

In order to achieve faster sustained growth and reduce debt related risks, we need to implement persuasive structural reforms.

"The first few stages of Andouble's economic policy have largely changed deflation expectations, but in order to consolidate and expand these achievements in financial stability, we need to continue our efforts."

The report says.

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< p > < < a href= > http://www.91se91.com/news/index_cj.asp > Euro > /a >. At present, the policies implemented by Member States and the whole European level help to consolidate the existing integrated framework, but there are still major challenges.

The report points out that the debt burden of the corporate sector in the euro area is heavy, and its restructuring process has been hampered by the fact that the restoration of the bank balance sheet has not yet been completed.

In addition, the credit situation is still difficult in the euro zone countries facing pressure.

Although the market mindset of some euro zone banks and sovereign states under pressure has improved significantly, this improvement may be ahead of the necessary repair of the balance sheet.

Therefore, European policymakers must push for a rigorous and pparent assessment of the current health of the banking system, and then resolutely clean up their balance sheets and close those banks that are no longer viable.

Other measures need to be taken to improve non bank credit and equity channels, thereby strengthening the balance sheet, which helps to consolidate the rising optimism in the financial market.

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"P" "these developments lead to" systemic liquidity mismatch ", that is, the potential size of capital outflows is decoupled from the ability of local institutions and market makers to play an intermediary role in these funds.

This bottleneck is likely to expand the impact of any shocks from other economies and make asset prices more widely affected.

The report says.

"If asset managers seek to establish positions in highly mobile but unrelated markets to hedge risks, the above will be particularly serious.

The situation caused by this mismatch may make the authorities have to provide liquidity to the markets which are particularly under pressure, so as to maintain the operation of local bonds and money markets and curb the spillover effects between countries. "

However, the report argues that there are great differences between emerging economies.

In general, Brazil, Indonesia, India and Turkey have been facing increasing market pressure in the past year, as investors increasingly pay attention to these imbalances and treat different markets and asset classes differently.

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The P report also gave policy recommendations specifically to China, saying that the challenge faced by Chinese policymakers is orderly pition to a more market-oriented financial system.

In this process, investors and borrowers may need to pay some costs caused by previous financial excesses, and market prices need to be adjusted to reflect risks more accurately.

"The rhythm of pition is very important.

If the adjustment speed is too fast, it may cause turbulence; if too slow, the vulnerability may continue to accumulate. "

The report suggests.

Other key factors for successfully achieving orderly pition include enhancing the ability of central banks to cope with unexpected changes in liquidity demand, implementing deposit insurance in a timely manner and strengthening the framework for dealing with failed financial institutions.

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