Chart of the Week: Financial Reform Report Card

By Tobias Adrian, Dirk Jan Grolleman, and Anastasiia Morozova

October 29, 2018

Countries have improved banking sector regulation considerably in the past decade, but areas of weakness remain (Steve Gottlieb/Newscom)

The many 10th anniversary retrospectives of the global financial crisis mostly agree: the financial system is safer today than it was when US investment bank Lehman Brothers collapsed in 2008. Continue reading “Chart of the Week: Financial Reform Report Card” »

By | October 29th, 2018|banking, capital markets, Corporate Risk, credit, Financial markets, Government|

The Financial System Is Stronger, but New Vulnerabilities Have Emerged in the Decade Since the Crisis

By Tobias Adrian

October 10, 2018

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Debt owed by governments, companies and households in economies with globally systemically important financial sectors has risen since the global financial crisis (Photo: Richard B. Levine/Newscom)

Although the global expansion has plateaued, easy monetary policies continue to support growth. But we shouldn’t rest too easily. Chapter 1 of the latest Global Financial Stability Report finds that short-term risks to the financial system have increased somewhat over the past six months. Continue reading “The Financial System Is Stronger, but New Vulnerabilities Have Emerged in the Decade Since the Crisis” »

A Decade After Lehman, the Financial System Is Safer. Now We Must Avoid Reform Fatigue

By Adolfo Barajas, Claudio Raddatz, and James P. Walsh

October 3, 2018

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A ticker in New York’s Times Square flashes the news of the collapse of Lehman Brothers on September 15, 2008: In the decade since, the financial sector has  strengthened considerably, but the reform agenda remains incomplete (Photo: Joshua Lott/Reuters/Newscom)

In the decade since the collapse of US investment bank Lehman Brothers sparked the most severe economic crisis since the Great Depression, regulation and supervision of the financial sector have been strengthened considerably. This has reduced the risk of another crisis, with all its attendant woes—unemployment, foreclosures, bankruptcies. But a new risk has emerged: reform fatigue. Continue reading “A Decade After Lehman, the Financial System Is Safer. Now We Must Avoid Reform Fatigue” »

Give Today’s Children a Chance

By  Christine Lagarde and Vitor Gaspar

September 24, 2018

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Children in early childhood education in Indonesia: more money put into education helps countries achieve their Sustainable Development Goals (Photo: Ajun-Ally/Pacific Press/Newscom)

World leaders are gathering at the United Nations to discuss how to deliver on development for all that is economically, socially, and environmentally sustainable—“The 2030 Agenda for Sustainable Development,” and its 17 Sustainable Development Goals (SDGs). Continue reading “Give Today’s Children a Chance” »

Ten Years After Lehman—Lessons Learned and Challenges Ahead

By Christine Lagarde

September 5, 2018

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A trader on the New York Stock Exchange the day US investment bank Lehman Brothers filed for bankruptcy: the global crisis that followed is a defining moment of our time (Photo: Nancy-Kaszerman/ZUMA Press/Newscom)

The global financial crisis remains one of the defining events of our time. It will forever mark the generation that lived through it. Continue reading “Ten Years After Lehman—Lessons Learned and Challenges Ahead” »

How To Deal With Failed Banks

By Deniz Igan

July 3, 2018

Versions in EspañolPortuguês

Reforms since the global financial crisis have made bail-ins a credible option and bail-outs less likely (photo: iStock by Getty Images)

During the global financial crisis, policymakers faced a steep trade-off in handling bank failures. Using public funds to rescue failing banks (bail-outs) could weaken market discipline and lead to excessive risk taking—the moral hazard effect. Continue reading “How To Deal With Failed Banks” »

By | July 3rd, 2018|Advanced Economies, banking, capital markets, correspondent banking|

Economic Preparedness: The Need for Fiscal Space

By Vikram Haksar, Marialuz Moreno-Badia, Catherine Pattillo and Murtaza Syed

June 27, 2018

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Countries must assess the amount of room in their budgets for increasing spending or cutting taxes (photo: Martin Barraud/iStock by Getty Images)

How much leeway national policymakers have for increasing spending or cutting taxes has been hard to assess. Continue reading “Economic Preparedness: The Need for Fiscal Space” »

Chart of the Week: When High Yield Goes Boom

By Divya Kirti

June 26, 2018

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A credit boom can be fueled by excessive optimism among investors (photo: Nick White/Newscom)

We’ve all heard about good cholesterol and bad cholesterol. Too much of the good stuff probably won’t do you any harm. Too much of the bad stuff can lead to a heart attack. Continue reading “Chart of the Week: When High Yield Goes Boom” »

Estimating Cyber Risk for the Financial Sector

By Christine Lagarde

June 22, 2018

Versions in  عربي,  中文,  Español, Français, Baˈhasa indoneˈsia日本語Português, Русский 

Average annual losses to financial institutions from cyber-attacks could reach a few hundred billion dollars a year (photo: Eti Ammos/iStock by Getty Images)

Cyber risk has emerged as a significant threat to the financial system. Continue reading “Estimating Cyber Risk for the Financial Sector” »

Chart of the Week: The Rise of Corporate Giants

By Federico J. Díez and Daniel Leigh

June 6, 2018

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The market power of “superstar” companies in advanced economies is growing (photo: iStock by Getty Images)

The growing economic wealth and power of big companies—from airlines to pharmaceuticals to high-tech companies—has raised concerns about too much concentration and market power in the hands of too few. Continue reading “Chart of the Week: The Rise of Corporate Giants” »

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