Global financial system yet not fully safe: IMF

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Washington, Sept 26: The global financial system was yet to be stabilised despite some reform progress, said the International Monetary Fund (IMF), five years after the financial crisis rocked the world.

The IMF said in its Global Financial Stability report that despite positive intentions shown by the policymakers, the reforms taken were yet to establish safe financial structures, reported Xinhua. It said the intervention measures needed to deal with a prolonged crisis in some regions and economies and it was delaying the process of putting the system on a secured path.

According to an agency report, Laura Kodres, assistant director of the IMF Monetary and Capital Markets Department, said in a press conference that the financial structures in the face of the crisis have not changed much.

The IMF said in its report that reforms in some areas needed to be further refined by policymakers even though the work was underway on the reform agenda to make markets and institutions more transparent, simplistic and less leveraged. The report was released ahead of the annual meetings of the global lender and World Bank.

Kodres said that the basic financial structures that were found to be affected by crisis were still in operation. He said the financial systems were still very complex, banking assets were very much concentrated and crucial issues were left unresolved.

The IMF said in its report that complexity can affect financial stability if the associated financial products are opaque and can not be easily priced.

OneIndia News

(With agency reports)

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