The IMF calls for caution given the “high” financial uncertainty

Director General of the International Monetary Fund (IMF), Kristalina Georgievathis Sunday he called for “remaining vigilant” in the face of “uncertainty” in the financial sector, which remains “high”.

The bankruptcy of the California-based Silicon Valley Bank (SVB) on March 10 caused a wave of concern in the banking sector in the United States and Europewhich had among its milestones the hasty sale of the Swiss entity Credit Suisse to its compatriot UBS a week ago or losses on the stock market of Deutsche Bank.

“It is clear that the risks to financial stability have increased”Kristalina Georgieva said at the China Development Forum, an event organized by the Chinese government in Beijing.

And that is that the purchase of Credit Suisse by UBS, which was piloted by the Swiss authorities, like recent measures by central banks to improve access to liquidity, prevented a panic but failed to restore calm to the financial markets.

“Political leaders have taken decisive action in response to risks to financial stability”the director of the IMF assessed in her speech.

“These measures have somewhat eased tensions in the markets, but uncertainty remains high, which underscores the need to remain vigilant,” he asserted.