The global financial system remains as risky as it was before the credit crisis, with the necessary “reboot” of the banking sector delayed by the emergency measures taken to prop up economic growth, the International Monetary Fund has warned.
In its twice-yearly Global Financial Stability Report, published on Tuesday, the IMF argued that despite a blizzard of new regulations, the banking system remains vulnerable.
“Although the intentions of policymakers are clear and positive, the reforms have yet to effect a safer set of financial structures, in part because, in some economies and regions, the intervention measures needed to deal with the prolonged crisis are delaying a ‘reboot’ of the system onto a safer path,” it said.
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