Global Financial Stability Report, October 2021

Global Financial Stability Report, October 2021

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Global Financial Stability Report, October 2021

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Bibliographic details

• Published: October 6, 2021

Overview

• Title string: "Global Financial Stability Report 10/12/2021"
• Thematic framing: "COVID-19, Crypto, and Climate" and "Navigating Challenging Transitions"
• Core statement: "Financial stability risks have been contained so far, reflecting ongoing policy support and a rebound in the global economy earlier this year."
• Key cross-cutting concerns:
  • "The optimism that propelled markets earlier in the year has faded on growing concerns about the strength of the global recovery, and ongoing supply chain disruptions intensified inflation concerns."
  • "Signs of stretched asset valuations in some market segments persist, and pockets of vulnerabilities remain in the nonbank financial sector; recovery is uneven in the corporate sector."

Chapter 1: Global Financial Stability Overview: A Delicate Balancing Act

• Main finding: "As the world continues to navigate the pandemic, financial stability risks have been contained so far thanks to the ongoing policy support."
• Persisting vulnerabilities:
  • "Financial vulnerabilities remain elevated in several sectors."
  • "Concerns about upside risks to the inflation outlook persist and asset valuations are stretched in some market segments."
  • "Emerging and frontier markets continue to face large financing needs amid higher funding costs."
  • "Risks are also rising at some nonbank financial institutions as they reach for yield to meet return targets."

Chapter 2: The Crypto Ecosystem and Financial Stability Challenges

• Summary: "The crypto ecosystem offers an exciting new world of opportunities but also challenges."
• Key risks identified:
  • "Crypto asset providers’ lack of operational or cyber resilience poses risks."
  • "Anonymity and limited global standards create significant data gaps for regulators and pose risks to financial integrity."
  • "Crypto assets in emerging markets may accelerate dollarization risks."
• Policy output: "The chapter concludes with a set of eight actionable policy recommendations."

Chapter 3: Investment Funds: Fostering the Transition to a Green Economy

• Analytical focus: the role of the global investment fund sector in supporting the transition to a green economy and the risks to the sector arising from that transition.
• Principal findings and guidance:
  • "Sustainable funds can support the global transition to a green economy but must be scaled up to have a major impact."
  • Policymaker actions recommended:
  • "Strengthen the global climate information architecture to foster climate finance markets."
  • "Ensure proper regulatory oversight to prevent greenwashing."
  • "Conduct scenario analysis and stress testing to mitigate financial stability risks."
  • Risk note: "A disorderly transition could disrupt the broader investment fund sector in the future."

Multimedia and Dissemination

• Press Briefing: "Global Financial Stability Report, October 2021" — October 12, 2021 — 44:20
• Chapter 2 webcast: "Global Financial Stability Report, October 2021: Chapter 2: The Crypto Ecosystem and Financial Stability Challenges" — October 1, 2021 — 17:49
• Chapter 3 webcast: "Global Financial Stability Report, October 2021: Chapter 3: Investment Funds: Fostering the Transition to a Green Economy" — October 4, 2021 — 13:32

Source: Global Financial Stability Report, October 2021

Content in this bundle

• data-ch2 — Dataset overview
  • data-ch2 — Dataset overview (Markdown version)
  • data-ch2 — Dataset overview (XLSX)
• data-ch3
  • data-ch3 (Markdown version)
  • data-ch3 (XLSX)
• Chapter 1
  • Chapter 1 (Markdown version)
  • Chapter 1 (PDF)
• Chapter 2
  • Chapter 2 (Markdown version)
  • Chapter 2 (PDF)
• CHAPTER 3 INVESTMENT FUNDS: FOSTERING THE TRANSITION TO A GREEN ECONOMY
  • CHAPTER 3 INVESTMENT FUNDS: FOSTERING THE TRANSITION TO A GREEN ECONOMY (Markdown version)
  • CHAPTER 3 INVESTMENT FUNDS: FOSTERING THE TRANSITION TO A GREEN ECONOMY (PDF)
• Executive Summary
  • Executive Summary (Markdown version)
  • Executive Summary (PDF)
• Foreword
  • Foreword (Markdown version)
  • Foreword (PDF)
• Global Financial Stability Report, October 2021: Key Highlights; October 12, 2021
  • Global Financial Stability Report, October 2021: Key Highlights; October 12, 2021 (Markdown version)
  • Global Financial Stability Report, October 2021: Key Highlights; October 12, 2021 (PDF)
• online-annex-ch2
  • online-annex-ch2 (Markdown version)
  • online-annex-ch2 (PDF)
• online-annex-ch3
  • online-annex-ch3 (Markdown version)
  • online-annex-ch3 (PDF)
• Full Report
  • Full Report (Markdown version)
  • Full Report (PDF)

References

• https://blogs.imf.org/2021/10/12/uncertainty-grips-markets-as-optimism-wanes
• Watch the Webcast
• https://blogs.imf.org/2021/10/01/crypto-boom-poses-new-challenges-to-financial-stability/
• Watch the Webcast
• Podcast
• https://blogs.imf.org/2021/10/04/how-investment-funds-can-drive-the-green-transition
• Watch the Webcast