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Regulators Raise Alarm on Financial Stability

Regulators Raise Alarm on Financial Stability

by Starling Insights

Starling Insights Editorial Board

Nov 07, 2024

Observations

At the recent International Monetary Fund (IMF) annual meetings in Washington DC, financial regulators voiced concern over fading support for strong regulations they believe to be essential to financial stability, as reported by Bloomberg's Laura Noonan.

Financial Stability Board Chair Klaas Knot emphasized that governments risk losing control over their policy agendas if financial stability is neglected. "You will spend most of your time drawing up rescue plans for an economy in free fall," Knot warned. Bank of England Governor Andrew Bailey echoed this, noting the "rear view mirror" effect as memories of the 2008 financial crisis fade, which could lead to a rollback in essential reforms.

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