Financial stability: “Uncertainty is high”, says IMF chief
The failure of Silicon Valley Bank in the US in early March raised concerns about the strength of the US and European banking sectors. (File photo)
The head of the International Monetary Fund (IMF), Kristalina Georgieva, called on Sunday to remain vigilant in the face of the still high uncertainty in the financial sector, comments which come after the recent setbacks of some Western banks.
< p class="e-p">The March 10 bankruptcy of California's Silicon Valley Bank (SVB) raised concerns about the soundness of the banking sector in the United States and Europe.
First European victim, Crédit Suisse was taken over in disaster by its compatriot UBS last Sunday for a fraction of its stock market value.
It is clear that risks to financial stability have increased, Kristalina Georgieva said on Sunday at the China Development Forum, a meeting hosted by the Chinese government in Beijing.
The takeover of Credit Suisse by UBS, piloted by the Swiss authorities, as well as the recent measures of central banks to improve access to liquidity have made it possible to avoid panic, but without succeeding in restoring stability to the markets.
Policymakers have taken decisive action in response to risks to financial stability, Georgieva stressed in his speech.
“ These measures have, to some extent, eased tensions in the markets, but uncertainty is high, underscoring the need to remain vigilant.
— Kristalina Georgieva, Head of the International Monetary Fund
In fact, banking stocks on European stock markets fell again on Friday.
Recent statements by Christine Lagarde, President of the European Central Bank (ECB), who reaffirmed the resilience of the banking system, and those of French President Emmanuel Macron or German Chancellor Olaf Scholz, who wanted to be reassuring, failed to calm people's minds.< p class="sc-v64krj-0 dlqbmr">The President of the European Central Bank, Christine Lagarde, assured that the banking system is resilient. (File photo)
US President Joe Biden meanwhile claimed in Ottawa on Friday that the banks were doing pretty well and that he saw nothing on the point. to explode. He did, however, acknowledge that it will take some time for things to calm down.