risk management – IMF Blog

Chart of the Week: Financial Reform Report Card

IMFBlog2019-03-13T12:23:50-04:00October 29, 2018|

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 10^th 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. […]

Volatility Strikes Back

IMFBlog2019-03-14T11:58:02-04:00May 3, 2018|

By Sergei Antoshin, Fabio Cortes, Will Kerry and Thomas Piontek

May 3, 2018

Investors who bet on continued low volatility suffered steep losses (photo: Richard B. Levine/Newscom).

The bouts of volatility in early February and late March that spooked investors were confined to equity markets. Nevertheless, they illustrate the potential for sudden market moves to expose fragilities in the financial system more broadly.

With central banks in […]

Fiscal Policy And Structural Reform

IMFBlog2017-04-14T01:45:09-04:00March 27, 2015|

By Vitor Gaspar

One of the big questions to emerge from the global financial crisis, especially in the euro area, is how to raise a country’s potential growth while restoring healthy public finances. For example, the euro area— despite some favorable news recently — faces marked-down growth prospects alongside high levels of public debt. The combination of high debt and tepid potential growth underscores the importance of improving prospects for sustained growth and safe and […]

Good Governance Curbs Excessive Bank Risks

IMFBlog2017-04-14T01:52:30-04:00October 16, 2014|

By Luis Brandão-Marques, Gaston Gelos, and Erik Oppers

The global financial crisis reminded us that banks often take risks that are excessive from society’s point of view and can damage the economy. In part, this is the result of the incentives embedded in compensation practices and of inadequate monitoring by stakeholders. Our analysis found the right policies could reduce banks risky behavior.

Our findings

In our latest Global Financial Stability Report we take stock of recent developments in executive pay, corporate governance, and bank risk taking, and conduct […]

Don’t Forget Financial Sector Reform

IMFBlog2017-04-15T14:42:30-04:00January 7, 2010|

IMF First Deputy Managing Director John Lipsky discusses the need for financial sector reform following the global financial crisis, and addresses the Fund’s role in assessing options for a financial sector tax to help pay for the costs of the crisis and improve systemic stability.

Going Beyond the Rules

IMFBlog2017-04-15T14:43:00-04:00December 1, 2009|

Some countries with similar financial and regulatory systems fared differently during this crisis. What are the reasons for this? And what made some financial institutions with similar business models, and in the same country, better equipped to deal with the virulence of the crisis?