• SOURCE: IMF

Financial Stability Improves, but Vulnerabilities Remain

ID

471093

Shoot Date

19 Apr 2017

Shoot Location

Washington, DC, United States

Description
Financial stability has continued to improve, as reflected by gains in many asset prices, says the IMF’s April 2017 Global Financial Stability Report. But policy and political uncertainty pose new risks to financial stability. So policymakers need to validate market optimism by getting the policy mix right, and deliver a stronger path for long-term, inclusive growth.
Shotlist
(English) Washington, DC – April 19, 2017 1. Wide officials at open of news conference to present Global Financial Stability Report 2. Mid journalists 3. SOUNDBITE: (English) Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF “The market is pricing an increase in interest rates. The risk is that interest rates might rise even more quickly and that could be triggered by fiscal imbalances. And that would represent the downside risk.” 4. Close reporter asking question 5. SOUNDBITE: (English) Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF “If policies go unexpectedly badly, some part of the corporate sector might be exposed to these unexpected shocks. So, there is a tail of vulnerable firms in the corporate sector that have a relatively low interest rate coverage ratio, i.e. where the cash flows that they generate do not necessarily cover the interest rate expenses. So, the $4 trillion number refers to that weak tail of the corporate sector.” 7. Close reporter asking question 8. SOUNDBITE: (English) Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF “The growth of credit in the Chinese economy has been very fast since the financial crisis. And the overall level of debt is very elevated. The Chinese authorities are taking steps to contain leverage, both in the banking system and in the shadow-banking system. They show some success in reining in credit growth. But, in our view, more needs to be done.” 9. Mid reporters 10. SOUNDBITE: (English) Peter Dattels, Deputy Director, Monetary and Capital Markets Department, IMF “Non-performing loans in the Euro area still is a significant matter. And, if you look at it over the past two years, NPLs have come down only about 120 billion, so they’re still hovering around the 1 trillion mark. That’s the bad news. The good news is there’s much more focus on addressing this problem.” 11. Wide reporters 12. Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF (SOUNDBITE OPENS WITH WIDE OF IMF OFFICIALS, CUTS TO TIGHT ON ADRIAN) “Getting the policy mix right, with respect to corporate tax reform in the U.S. means it will translate to more capital expenditures, more investment, which will in turn boost growth. That should really be the focus of the corporate tax reform, as opposed to financial risk-taking through payouts to shareholders, more leverage and these trends that we have observed in recent years.” 13. Mid reporters 14. Wide IMF officials at end of briefing
Usage Rights/Restrictions
This media asset is free for editorial broadcast, print, online and radio use. It is restricted for use for other purposes.

Contact

  • Client Relations
    TheNewsMarket