2006 April - Global Financial Stability Report - Market Development and Issues - Overview of the World Economy and Finance

Author: International Monetary Fund
Publisher:
Publication Date: 2006-09-01
Features: Provides a comprehensive introduction to the development of credit markets, recent characteristics, structural changes, and their impact on the financial system, particularly the profound effects on traditional bank credit. Analyzes the impact of structural changes in emerging market sovereign debt on financial stability. In the new context, assesses the resilience of the global financial system to cyclical challenges. The Global Financial Stability Report evaluates the dynamics of global financial markets to identify potential systemic vulnerabilities. By drawing attention to potential issues in the global financial system, the report aims to contribute to crisis prevention, thereby supporting global financial stability and the sustained economic growth of IMF member countries. Some parts of this report are derived from a series of informal discussions, including exchanges with commercial banks, investment banks, securities firms, asset management companies, hedge funds, insurance companies, pension funds, stock and futures exchanges, credit rating agencies, regulatory authorities, and academic researchers in major financial centers and countries. This report reflects information available as of February 10, 2006. The report also benefits from the suggestions and comments of staff from other departments of the IMF and the views of the Executive Directors on the Global Financial Stability Report after their discussion on March 27, 2006. However, the analysis and policy considerations in the report are the views of the staff contributing to its preparation and do not represent the views of the Executive Directors, their national authorities, or the IMF.