## GLOBAL FINANCIAL STABILITY REPORT Key Highlights 2025 APR

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**Canonical URL:** [GLOBAL FINANCIAL STABILITY REPORT Key Highlights 2025 APR](https://www.imf.org/-/media/files/publications/gfsr/2025/april/english/infographic.pdf)

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### Overview
- Financial stability risks have meaningfully increased, driven by abrupt tightening in financial conditions.
- Conflicts and other geopolitical risk events can severely impact asset prices – threatening global financial stability.
- Read more in the April 2025 Global Financial Stability Report.

### Policy recommendations (by audience)
- All countries
  - Tailor oversight of financial institutions based on country-specific geopolitical risks
  - Identify, quantify, and manage geopolitical risks while holding adequate capital and liquidity buffers
  - Maintain adequate macroeconomic policy space and international reserve buffers
- Emerging markets
  - Develop and deepen financial markets in developing economies to help investors manage geopolitical risks
- Preparedness and international policy measures
  - Prepare to manage and mitigate risks from severe market turmoil
  - Implement international prudential standards including Basel III and measures aimed at mitigating risks of nonbank leverage
  - Enhance multilateral surveillance and global financial safety net
  - Rebuild fiscal buffers credibly

### Key vulnerabilities keeping financial stability risks elevated
- Strains among highly leveraged financial institutions, especially those highly connected with banking system
- Debt sustainability for highly indebted sovereigns and turbulence in bond markets
- Hedge fund borrowing (USD trillion)
  - 2
  - 2014202420143Q2024
  - 7
- US banks’ credit to NBFI (% of CET1)
  - 62%
  - 119%
- Global public debt (% of GDP)
  - 201520152025 est.Apr. 2025
  - 80%
  - 95%
  - 1.2%
  - 3.0%

### Asset repricing and valuation indicators
- Further asset repricing noted; valuation (percentile)
  - 50
  - 100
  - 75
  - 25
  - Oct. 2024 GFSR
  - Apr. 2025 GFSR
  - Post-GFC median (Jan. 2010 to Apr. 2025)
- Asset categories shown as more stretched vs less stretched:
  - US equities
  - Global tech. equities
  - US high-yield bonds
  - EU high-yield bonds

### Market impact of geopolitical risk events
- Average Response of Stock Returns and Sovereign Risk Premium to Domestic Geopolitical Risk Events (percentage points, monthly)
  - Firm stock returns and Sovereign CDS premium plotted across scale:
    - -2.0
    - -2.5
    - -3.0
    - -1.5
    - -1.0
    - -0.5
    - 0.0
    - 0.5
    - 1.0

*Sources: Bloomberg Finance L.P., Federal Reserve Board, LSEG Datastream, MSCI, S&P Capital IQ Pro, US Office of Financial Research, US Securities and Exchange Commission, IMF World Economic Outlook database and IMF staff calculations. Sources: Bloomberg Finance L.P.; Caldara and Iacoviello 2022; IMF, World Economic Outlook database; LSEG Datastream; and IMF staff calculations.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2025/april/english/infographic.pdf_