## Figure 1.2. Global Financial Stability Map: Assessment of Risks and Conditions (Notch changes since the October 2016 Global Financial Stability Report)

## Source details

**Canonical URL:** [Figure 1.2. Global Financial Stability Map: Assessment of Risks and Conditions (Notch changes since the October 2016 Global Financial Stability Report)](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-2.pdf)

## Other formats

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### Key findings (numbered conclusions from the figure)
- 1. Macroeconomic risks have declined, driven by improving economic activity and lower inflation risks.
- 2. Emerging market risks remain elevated, as higher inflation volatility offsets improvements in the corporate sector and external financing.
- 3. Credit risks have declined amid improvement in banks and the corporate sector.
- 4. Monetary and financial conditions are unchanged, as tighter monetary policies are offset by easier financial conditions.
- 5. Risk appetite has strengthened as a result of improved confidence and gains in risk assets.
- 6. Market and liquidity risks have moderated from an elevated level against the backdrop of better liquidity conditions.

### Overall map structure and interpretation
- Vertical axis labels: 
  - Higher risk
  - Lower risk
  - Easier
  - Tighter
  - Higher risk appetite
  - Lower risk appetite
  - Unchanged
- Overall notch changes are the simple average of notch changes in individual indicators.
- Changes in risks and conditions are based on a range of indicators, complemented by IMF staff judgment.
- For lending conditions, positive values represent a slower pace of tightening or faster easing.
- CB = central bank; QE = quantitative easing.
- Source: IMF staff estimates.

### Subcategories and reported notch-change counts (as shown on the x-axis)
- Overall (7)
- Fundamentals (4)
- Volatility (2)
- Corporate sector (2)
- External financing (2)
- Sovereign credit (1)
- Inflation or deflation risks (1)
- Economic activity (4)
- Economic uncertainty (1)
- Overall (4)
- Asset allocations (1)
- Uncertainty (1)
- Relative asset returns (1)
- Emerging markets (1)
- Overall (8)
- Banking sector (3)
- Household sector (2)
- Corporate sector (3)
- Overall (11)
- Liquidity and funding (5)
- Volatility (2)
- Market positioning (2)
- Asset valuations (2)
- Overall (6)
- Monetary policy conditions (3)
- Financial conditions index (1)
- Lending conditions (1)
- QE and CB balance sheet expansion (1)

### Methodology note
- See Annex 1.1 in the April 2010 Global Financial Stability Report and Dattels and others 2010 for a description of the methodology underlying the Global Financial Stability Map.
- The number in parentheses next to each category on the x-axis indicates the number of individual indicators within each subcategory of risks and conditions.

*Source: IMF staff estimates.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-2.pdf_