## Global Financial Stability Report, October 2019: Lower for Longer _Global Financial Stability Report, October 2019_ ## Source details **Canonical URL:** [Global Financial Stability Report, October 2019: Lower for Longer](https://www.imf.org/en/publications/gfsr/issues/2019/10/01/global-financial-stability-report-october-2019) ## Other formats - [Markdown version](/en/publications/gfsr/issues/2019/10/01/global-financial-stability-report-october-2019/index.md) - [Structured JSON version](/en/publications/gfsr/issues/2019/10/01/global-financial-stability-report-october-2019/index.json) - [Bundle manifest](/en/publications/gfsr/issues/2019/10/01/global-financial-stability-report-october-2019/bundle-manifest.json) ## Bibliographic details - Published: October 16, 2019 --- ### Key vulnerabilities identified - Rise in corporate debt burdens. - Increasing holdings of riskier and more illiquid assets by institutional investors. - Growing reliance on external borrowing by emerging and frontier market economies. - ESG issues that may materially affect corporate performance and give rise to financial stability risks via exposure of financial institutions and large losses from climate change. ### Policy recommendations and mitigation measures - Stricter supervisory and macroprudential oversight of firms. - Strengthened oversight and disclosure for institutional investors. - Implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies. - Policymakers to develop standards, foster disclosure and transparency, and promote integration of sustainability considerations into investments and business decisions. - Discussion of central bank swap line arrangements and international reserves in the home economies of global non-US banks as possible mitigation tools for dollar funding stress. ### Chapter 5 — Banks' US dollar funding fragility (summary of findings) - Rising US dollar funding costs are associated with financial stress in the home economies of global non-US banks. - Rising US dollar funding costs are associated with cutbacks in the supply of loans to countries that borrow in US dollars. - Negative effects are amplified when US dollar funding is fragile and the share of US dollar assets in total assets is high. - Emerging markets borrowing in US dollars are particularly vulnerable to cutbacks in cross-border lending because their ability to substitute into alternative funds in US dollars or even other currencies is limited. ### Chapter 6 — Sustainable finance (summary of findings) - ESG-related disclosure remains fragmented and sparse—partly because of associated costs, the often voluntary nature of disclosure, and lack of standardization. - Investor interest in ESG factors has continued to rise in recent years. - Sustainable finance faces the challenge of lack of standardization; policymakers have a role to play in developing standards, fostering disclosure and transparency, and promoting integration of sustainability considerations into investments and business decisions. *Source: Global Financial Stability Report, October 2019: Lower for Longer (IMF).* --- ## Content in this bundle - **Chapter 1** - [Chapter 1 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch1.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 1 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch1.pdf){rel="external" type="application/pdf"} - **Chapter 2** - [Chapter 2 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch2.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 2 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch2.pdf){rel="external" type="application/pdf"} - **Chapter 3** - [Chapter 3 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch3.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 3 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch3.pdf){rel="external" type="application/pdf"} - **Chapter 4** - [Chapter 4 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch4.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 4 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch4.pdf){rel="external" type="application/pdf"} - **Chapter 5** - [Chapter 5 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch5.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 5 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch5.pdf){rel="external" type="application/pdf"} - **Chapter 6** - [Chapter 6 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/ch6.pdf.md){rel="alternate" type="text/markdown"} - [Chapter 6 (PDF)](/-/media/files/publications/gfsr/2019/october/english/ch6.pdf){rel="external" type="application/pdf"} - **GFSR Chapter 1 Oct. 2019** - [GFSR Chapter 1 Oct. 2019 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch1.xlsx.md){rel="alternate" type="text/markdown"} - [GFSR Chapter 1 Oct. 2019 (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch1.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **GFSR Chapter 2 Oct. 2019 — Dataset Overview** - [GFSR Chapter 2 Oct. 2019 — Dataset Overview (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch2.xlsx.md){rel="alternate" type="text/markdown"} - [GFSR Chapter 2 Oct. 2019 — Dataset Overview (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch2.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **gfsr-oct-2019-ch3 — Dataset overview** - [gfsr-oct-2019-ch3 — Dataset overview (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch3.xlsx.md){rel="alternate" type="text/markdown"} - [gfsr-oct-2019-ch3 — Dataset overview (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch3.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **dataset overview** - [dataset overview (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch4.xlsx.md){rel="alternate" type="text/markdown"} - [dataset overview (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch4.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **Dataset overview** - [Dataset overview (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch6.xlsx.md){rel="alternate" type="text/markdown"} - [Dataset overview (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsr-oct-2019-ch6.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **Dataset: Chapter 5. Banks' Dollar Funding: A Source of Financial Vulnerability** - [Dataset: Chapter 5. Banks' Dollar Funding: A Source of Financial Vulnerability (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/data/gfsroct2019-ch5.xlsx.md){rel="alternate" type="text/markdown"} - [Dataset: Chapter 5. Banks' Dollar Funding: A Source of Financial Vulnerability (XLSX)](/-/media/files/publications/gfsr/2019/october/english/data/gfsroct2019-ch5.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"} - **Executive Summary** - [Executive Summary (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/execsum.pdf.md){rel="alternate" type="text/markdown"} - [Executive Summary (PDF)](/-/media/files/publications/gfsr/2019/october/english/execsum.pdf){rel="external" type="application/pdf"} - **Foreword** - [Foreword (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/foreword.pdf.md){rel="alternate" type="text/markdown"} - [Foreword (PDF)](/-/media/files/publications/gfsr/2019/october/english/foreword.pdf){rel="external" type="application/pdf"} - **Global Financial Stability Report October 2019: Online Annex 1.1. Technical Note; October 16, 2019** - [Global Financial Stability Report October 2019: Online Annex 1.1. Technical Note; October 16, 2019 (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/onlineannex11.pdf.md){rel="alternate" type="text/markdown"} - [Global Financial Stability Report October 2019: Online Annex 1.1. Technical Note; October 16, 2019 (PDF)](/-/media/files/publications/gfsr/2019/october/english/onlineannex11.pdf){rel="external" type="application/pdf"} - **GLOBAL FINANCIAL STABILITY REPORT—Banks’ Dollar Funding: A Source of Financial Vulnerability** - [GLOBAL FINANCIAL STABILITY REPORT—Banks’ Dollar Funding: A Source of Financial Vulnerability (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/onlineannex5.pdf.md){rel="alternate" type="text/markdown"} - [GLOBAL FINANCIAL STABILITY REPORT—Banks’ Dollar Funding: A Source of Financial Vulnerability (PDF)](/-/media/files/publications/gfsr/2019/october/english/onlineannex5.pdf){rel="external" type="application/pdf"} - **Full Report** - [Full Report (Markdown version)](/-/media/files/publications/gfsr/2019/october/english/text.pdf.md){rel="alternate" type="text/markdown"} - [Full Report (PDF)](/-/media/files/publications/gfsr/2019/october/english/text.pdf){rel="external" type="application/pdf"} --- ## References - [Blog: Lower for Longer: Rising Vulnerabilities May Put Growth at Risk](https://blogs.imf.org/2019/10/16/lower-for-longer-Rising-vulnerabilities-may-Put-growth-at-risk/) - [Blog: Global Banks May Grow More Vulnerable to a Dollar Disruption](https://blogs.imf.org/2019/10/11/global-banks-may-grow-more-vulnerable-to-a-dollar-disruption) - [Blog: Connecting the Dots Between Sustainable Finance and Financial Stability](https://blogs.imf.org/2019/10/10/connecting-the-dots-between-sustainable-finance-and-financial-stability) - [Author: Evan Papageorgiou, IMF; Interviewer: Elizabeth Schulze, CNBC International](https://www.imf.org/en/videos/view/6093753989001) - [Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.](https://www.imf.org/en/email-subscription/index) - [Modify your profile](https://www.imf.org/en/email-subscription/login) - [Video](https://www.imf.org/external/mmedia/view.aspx?vid=6094056463001) - [Video](https://www.imf.org/external/mmedia/view.aspx?vid=6093753989001) _Source: https://www.imf.org/en/publications/gfsr/issues/2019/10/01/global-financial-stability-report-october-2019_