'IMF remains concerned about recent turbulence in banking sector': Chief Economist
IMF's Chief Economist said that "the story is not over" and that EU banks were not immune to problems as long as the bloc did not go further to complete long-discussed mechanisms to deal with failed banks.
- May 9, 2023,
- Updated May 9, 2023 3:40 PM IST
International Monetary Fund's (IMF) chief economist Pierre-Olivier Gourinchas on Monday said that IMF remains concerned about recent turbulence in the banking sector despite actions by the US and Swiss authorities to deal with troubled banks on their watch.
He added "the story is not over" and that EU banks were not immune to problems as long as the bloc did not go further to complete long-discussed mechanisms to deal with failed banks, according to a report by Reuters.
Concerns about the stability of banks in the United States and elsewhere persists after the collapse of some of the major banks including Silicon Valley Bank (SVB), Signature Bank over the last few months.
Japan's finance minister too said that finance leaders of the Group of Seven (G7) advanced economies will discuss this week ways to strengthen the global financial system, as recent US bank failures bring the risk of digital bank runs into focus.
The environment surrounding finance has changed dramatically with the emergence of social media and Internet banking, said Shunichi Suzuki, who will chair the G7 finance leaders' gathering to be held May 11-13 in the Japanese city of Niigata.
"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting.
Japan would aim to issue a G7 joint statement after the finance leaders' meeting, which may stress the need for authorities to remain vigilant to banking sector woes, Reuters reported citing two government sources with direct knowledge of the matter.
(With inputs from Reuters)
International Monetary Fund's (IMF) chief economist Pierre-Olivier Gourinchas on Monday said that IMF remains concerned about recent turbulence in the banking sector despite actions by the US and Swiss authorities to deal with troubled banks on their watch.
He added "the story is not over" and that EU banks were not immune to problems as long as the bloc did not go further to complete long-discussed mechanisms to deal with failed banks, according to a report by Reuters.
Concerns about the stability of banks in the United States and elsewhere persists after the collapse of some of the major banks including Silicon Valley Bank (SVB), Signature Bank over the last few months.
Japan's finance minister too said that finance leaders of the Group of Seven (G7) advanced economies will discuss this week ways to strengthen the global financial system, as recent US bank failures bring the risk of digital bank runs into focus.
The environment surrounding finance has changed dramatically with the emergence of social media and Internet banking, said Shunichi Suzuki, who will chair the G7 finance leaders' gathering to be held May 11-13 in the Japanese city of Niigata.
"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting.
Japan would aim to issue a G7 joint statement after the finance leaders' meeting, which may stress the need for authorities to remain vigilant to banking sector woes, Reuters reported citing two government sources with direct knowledge of the matter.
(With inputs from Reuters)