IMF: Better risk management needed following banking meltdown

'Financial stability' on the line

The International Monetary Fund has called on regulators around the world to safeguard the financial sector following the collapse of Silicon Valley Bank and Signature Bank in the US, and the sale of Credit Suisse to UBS in Europe.

In a blog posted on the IMF website, Antonio Garcia Pascual deputy chief in global markets analysis division, Fabio Natalucci the deputy director of the monetary and capital markets department, and Thomas Piontek senior financial sector expert Pascual's team, called for regulators to "safeguard this broad swath of the financial sector that comprises an array of institutions beyond banks". The recent "strains" some banks have faced come at the same time monetary policy continues to tighten and high remains historically inflation, putting added pressure on the financial sector. Although...