International Monetary Fund (IMF) Global Financial Stability Report published for 2021

The IMF has published its Global Financial Stability Report for 2021 entitledCovid-19, Crypto and Climate: Navigating Challenging Transitions, assessing key vulnerabilities to which the global financial system is exposed. This annual report is aimed at preventing crises by highlighting economic policies that may mitigate systemic risks.

In addition to surveying the global financial outlook, the report focuses on the opportunities and challenges posed by the global pandemic, digitalization of the economy and financial services, and the existential threat from climate change. The report suggests that these “3Cs” - COVID-19, crypto, and climate - offer opportunities for sustaining the ongoing recovery, facilitating more efficient, accessible, and inclusive financial service provision and making the economy more environmentally-friendly. However, the report also concludes that a globally-coordinated response is required to counter risks and vulnerabilities which, if left unchecked, could put growth at risk in the medium term or test the resilience of the global financial system.

The report is divided into 3 distinct chapters:

• Global Financial Stability Overview
• The Crypto Ecosystem and Financial Stability Challenges
• Investment Funds: Fostering the Transition to a Green Economy

The IMF’s announcement can be found here.

The Report can be found here.