Central banks must be careful when tightening policy: IMF

WASHINGTON: Central banks of advanced economies must try to limit collateral damage to emerging markets when the time comes to tighten monetary policy, the International Monetary Fund's steering panel said on Saturday.

IMF warns that any US default on its debt obligations would imperil global economy

WASHINGTON — A U.S. debt default in the event that a politically divided Congress fails to raise the federal borrowing limit would imperil the entire global economic recovery, a senior International Monetary Fund official warned Wednesday.

Global financial risks have increased, says IMF

Risks to global financial stability have increased in the past six months despite efforts by policymakers to make the financial system safer, according to the International Monetary Fund.

IMF to assess economic spillovers in new monitoring rules

WASHINGTON (Reuters) - The International Monetary Fund approved changes to its annual economic surveillance rules on Wednesday that now make it mandatory for the Fund to assess whether the domestic policies of a country are affecting global financial stability.

Global Liquidity Is Having a Major Impact on Financial Stability and Economic Growth, Says Bank of Canada Governor Mark Carney

LONDON , United Kingdom , Nov. 8, 2011 /CNW/ - Large, abrupt fluctuations in global liquidity are having a major impact on global financial stability and economic growth, Bank of Canada Governor Mark Carney said today in a speech to the Canada-United Kingdom Chamber of Commerce. "Over the medium term, the continuation of such extreme liquidity cycles could ultimately threaten open capital markets and a free trading system if not better addressed," he warned.

ECB: Financial Stability Outlook "Challenging" On Contagion Risks

FRANKFURT (Dow Jones)--Contagion from the euro zone's debt crisis remains the key risk to financial stability in the single currency bloc, the European Central Bank warned Wednesday, reiterating its opposition to a debt restructuring.

"Despite improving global and euro area economic and financial conditions, the overall outlook for financial stability has remained very challenging in the euro area," the ECB said in its semi-annual Financial Stability Review.

IMF: Government Debt, Capital Flows Threaten Financial Stability

Global financial stability has improved in recent months on the back of a strengthening recovery, but vulnerabilities remain due to high government debt levels in advanced economies that are putting pressure on banks' balance sheets even as the effort to repair the financial system remains incomplete, the International Monetary Fund said in a report Wednesday.

UK holding back progress on global financial stability

A new report published today argues that the UK is subverting progress towards a safer financial system, and has become a major barrier to international efforts for reform.

The report, Subverting Safer Finance by think-tank nef (the new economics foundation), reveals that compared with other major financial centres, including even the US, the UK is part of the problem in key areas of financial reform, rather than leading the search for solutions.