IMF / GFSR PRESSER

10-Oct-2018 00:02:20
Ten years after the collapse of Lehman brothers sent markets into crisis, banks and governments have largely restored confidence in the stability of the world’s systems, but new risks are emerging, the IMF says in the latest Global Financial Stability Report. IMF
Size
Format
Acquire
333.7 MB
HD PAL
137.66 MB
SD PAL
337.04 MB
HD NTSC
DESCRIPTION
STORY: IMF / GFSR PRESSER
TRT: 2:20
SOURCE: IMF
RESTRICTIONS: NONE
LANGUAGE: ENGLISH / NATS

DATELINE: 10 OCTOBER 2018, NUSA DUA, BALI, INDONESIA
SHOTLIST
1. Wide shot, IMF officials before briefing on Global Financial Stability Report
2. Med shot, journalists during briefing
3. SOUNDBITE (English) Tobias Adrian, IMF Monetary and Capital Markets Director:
“Short-term risks to financial stability have increased, and risks in the medium term remain elevated. So, while there are reasons for optimism, this is no time for complacency.”
4. Med shot, IMF officials at briefing
5. SOUNDBITE (English) Tobias Adrian, IMF Monetary and Capital Markets Director:
“The danger is that at some point, those trade tensions are going to adversely impact investor confidence, hence global financial conditions. And, we know from economic analysis that those confidence shocks can have significant adverse consequences for macroeconomic activity. So, there’s really a tight macrofinancial link that can give rise to downside risks.”
6. Close up, reporter asking question
7. SOUNDBITE (English) Tobias Adrian, IMF Monetary and Capital Markets Director:
“In our assessment, tightening is going to continue so that is going to put further upward pressure on interest rates, further upward pressure on the dollar and, in general, financial conditions for emerging markets are expected to tighten going forward. So, that is going to trigger some outflows of capital that has flown very strongly from advanced economies to emerging markets in recent years.”
8. Med shot, reporters
9. SOUNDBITE (English) Tobias Adrian, IMF Monetary and Capital Markets Director:
“What we worry about is when we see economies where housing prices are rising and household debt is rising at the same time and there is also potential for underwriting standards to deteriorate. So, our recommendation for many jurisdictions where we see such developments is to deploy prudential tools actively.”
10. Med shot, IMF officials at end of briefing
11. Wide shot, IMF officials at end of briefing
STORYLINE
Ten years after the collapse of Lehman brothers sent markets into crisis, banks and governments have largely restored confidence in the stability of the world’s systems, but new risks are emerging, the IMF says in the latest Global Financial Stability Report.

“Short-term risks to financial stability have increased, and risks in the medium term remain elevated. So, while there are reasons for optimism, this is no time for complacency,” said Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Director at a news conference in Bali, Indonesia Wednesday.

The risk of downturn has increased since the release of the last GFSR report. Adrian noted Political developments and uncertainty over trade tensions have also added to the downside risks.

“The danger is that at some point, those trade tensions are going to adversely impact investor confidence, hence global financial conditions. And, we know from economic analysis that those confidence shocks can have significant adverse consequences for macroeconomic activity. So, there’s really a tight macrofinancial link that can give rise to downside risks,” Adrian said.


“To sum up, short term risks to financial stability have increased and medium-term risks remain elevated,” said Adrian. “There are concerns that investor confidence may be leading them to take undue risks.”

Adrian laid out some of the risks to watch out for in the short term – including risks for emerging market economies.

“In our assessment, tightening is going to continue so that is going to put further upward pressure on interest rates, further upward pressure on the dollar and, in general, financial conditions for emerging markets are expected to tighten going forward. So, that is going to trigger some outflows of capital that has flown very strongly from advanced economies to emerging markets in recent years,” he said.

Adrian also addressed rising housing prices and household debt levels.

“What we worry about is when we see economies where housing prices are rising and household debt is rising at the same time and there is also potential for underwriting standards to deteriorate. So, our recommendation for many jurisdictions where we see such developments is to deploy prudential tools actively,” he said.

A full copy of the report including data on specific countries and regions may be found at https://www.imf.org/en/publications/gfsr
Category
Topical Subjects
Source
Alternate Title
unifeed181010b