Global banks vulnerable to dollar funding shocks, IMF stability report shows
There has been a “resurgence” of US dollar liabilities relative to assets in non-US banks, IMF warns
Non-US banks are still vulnerable to dollar disruption despite post-crisis reforms aimed at strengthening the global financial system, the International Monetary Fund warns.
The fund finds evidence of a “resurgence” of US dollar liabilities relative to assets, akin to that seen before the 2008 financial crisis. Furthermore, dollar liquidity remains “well below” the overall liquidity of banks’ balance sheets, it finds.
The findings are driven by three measures developed to analyse non-US bank’s
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