In their latest Global Financial Stability Report, the International Monetary Fund said: "A further escalation of trade tensions, as well as rising geopolitical risks and policy uncertainty in major economies, could lead to a sudden deterioration in risk sentiment, triggering a broad-based correction in global capital markets and a sharp tightening of global financial conditions". These policies have contributed to a slowdown in economic growth, which is happening just as trade tensions with the USA are starting to bite. "To adequately address potential systemic risks, financial regulation and supervision should be used more proactively".
Finance Minister Asad Umar left for Indonesia on Monday night to participate in the annual meetings of the International Monetary Fund and World Bank at Bali, scheduled to run until October 12, and formally request a bailout programme, reports Dawn news.
The IMF has slashed its latest growth forecasts, downgrading the US, China, the eurozone and the United Kingdom, as tit-for-tat tariffs bite.
Khan said he will present a roadmap before the nation listing steps the government will take to stabilise the economy.
While banks have increased their capital and liquidity buffers since the global financial crisis a decade ago, they remain exposed to highly indebted companies, households and sovereigns, as well as to holdings of opaque and illiquid assets, and to the use of foreign currency funding.
"Also, governments need to invest in better managing their own investments because a significant proportion of money is wasted through all kinds of inefficiencies due to bad management".
"De-escalate, fix the system, and don't break it", she said.
Tropical Storm Michael Will Become a Hurricane Monday
It's forecast to move toward the Baja this week and eventually make landfall as a tropical storm by week's end. Today we're expecting very warm, muggy weather, however, Tuesday a strong cold front is going to approach us.
It talks of "dangerous undercurrents" in the global system. "The rapid pace of growth in household debt, which is now at the high end for emerging markets, also raises concerns".
Its analysis sees a tail risk that emerging-market economies - excluding China - could face medium-term debt outflows, similar in magnitude to that during the global financial crisis.
India hopes to secure a waiver from US sanctions on Iran before they take effect on November 4, as it had significantly cut Iranian oil imports before the deadline, officials said on Monday...
Around 32,000 members of the global financial elite are on the Indonesian holiday island for a week of discussions that have been clouded by U.S. President Donald Trump's America First trade policy.
China's economy could also take a hit: The IMF revised its forecast for economic growth in 2019 down to 6.2 percent, slightly lower than previous estimates and down from 6.6 percent this year.
The worldwide finance agency dropped its projection for world economic growth by two-tenths of a percentage point for both 2018 and 2019 to 3.7 percent, the first time it had trimmed its economic outlook in more than two years.