Central banks of many emerging markets for the first time used asset purchases to mitigate stress in local bonds and currency markets. The April 2019 Global Financial Stability Report (GFSR) finds that despite significant variability over the past two quarters, financial conditions remain favourable. UPSC Aspirants should be aware of the topics related to Finance and Economics in order to score more marks in the IAS Exam.. Financial Stability and Development Council (FSDC) can be related to Indian Economy of the General Studies Paper 3 in the UPSC Syllabus. International Monetary Fund. The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system. Chapter 6 reports on the incorporation of environmental, social, and governance (ESG) principles into finance. This chapter shows that corporate sector vulnerabilities are already high in several systemically important economies as a result of rising debt burdens and weakening debt service capacity. (Part 6) EXPECTED CURRENT AFFAIRS 2020 : UPSC CSE PRELIMS SPECIAL FACTS 2020 PART 6 pappa. Your email address will not be published. Author: Adolfo Barajas, IMF; Interviewer: Josh Zumbrun, Wall Street Journal, Author: Evan Papageorgiou, IMF; Interviewer: Elizabeth Schulze, CNBC International. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies. Q.‘Global Financial Stability Report’ is prepared by the (UPSC CSAT 2016) European Central Bank. World Development Report, 2020 by World Bank. Such negative effects are amplified when US dollar funding is fragile and the share of US dollar assets in total assets is high. About: World Economic Outlook. World Trade Outlook Indicator: World Trade Organisation (WTO) 13. We will post daily … Continue reading "PRELIMS BOOSTERS – 2018: IMF and Kashmir Stag" Favorable external financing conditions, such as falling global interest rates, supported debt portfolio flows to emerging markets and contributed to the decline of emerging market credit spreads. World Development Report – UNCTAD; Global Financial Stability Report – IMF; World Investment Report – IBRD (World Bank) Global Competitiveness Report – World Economic Forum Select the correct answer using the codes given below: A. Financial Stability and Development Council (FSDC) - UPSC Notes The Financial Stability and Development Council (FSDC) is an autonomous body constituted by the Government of India. UPSC Aspirants should be aware of the topics related to Finance … Highlights of Read More… The candidates can learn about Capital Markets, recapitalization and other related topics from the links below: Complement your UPSC preparation with the help of following links: Your email address will not be published. The IMF Press Center is a password-protected site for working journalists. Ans -> Option D. BIS is a committee on banking supervision set norms in 1988 (I), 2004 (II), 2011(III) to ensure global financial stability which are collectively called as BASEL Norms. The Global Financial Stability Report is released by the International Monetary Fund. Subject: Report. Policymakers have a role to play in developing standards, fostering disclosure and transparency, and promoting integration of sustainability considerations into investments and business decisions. ‘Global Financial Stability Report’ is prepared by the (a) European Central Bank (b) International Monetary Fund (c) International Bank for Reconstruction and Development (d) Organization for Economic Cooperation and Development. It is released twice per year, in April and October. The recently released Global Financial Stability Report by the International Monetary Fund brings out the following salient facts: The Indian industrial sector is now among the most heavily indebted in the world in terms of the ability of its cash flows to meet its bank loan repayments. 20th Meeting: The Meeting reviewed the current global and domestic economic situation and financial stability issues including, inter-alia, those concerning Banking and NBFCs. March 12, 2020 Current. These fact sheets are based on important topics that were in news. The Programme for International Student Assessment (PISA) Organisation of Economic Development and Cooperation (OECD) 12. GK, General Studies, Optional notes for UPSC, IAS, Banking, Civil Services. B Nonfinancial corporate sectors are witnessing the financial vulnerabilities – Due to an increase in the debt-borrowing to meet the cash shortages. With private and public debt already high in some countries, easy financing conditions may encourage excessive buildup of debt, raising rollover and debt sustainability risks. The Global Gender Gap Report is released by … Reports & Indices Economic performance Index - IMF Global Financial Stability report - IMF End of Childhood report - Save the Children (... Reports & … The April 2019 Global Financial Stability Report (GFSR) finds that despite significant variability over the past two quarters, financial conditions remain favourable. Risk asset prices have rebounded following the precipitous fall early in the year, while benchmark interest rates have declined, leading to an overall easing of financial conditions. 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Steps to be taken when the pandemic is under control: Banks to implement credit provisions to rebuild capital and liquidity buffers. GK, General Studies, Optional notes for UPSC, IAS, Banking, Civil Services. IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves, Blog: Lower for Longer: Rising Vulnerabilities May Put Growth at Risk, Blog: Global Banks May Grow More Vulnerable to a Dollar Disruption, Blog: Connecting the Dots Between Sustainable Finance and Financial Stability, Financial Stability: The Good and Bad of Lower Rates, Chapter 1: Global Financial Stability Overview: Lower for Longer, Chapter 2: Global Corporate Vulnerabilities: Riskier Business, Chapter 3: Institutional Investors: Falling Rates, Rising Risks, Chapter 4: Emerging and Frontier Markets: Mind the Debt, Chapter 5: Banks' Dollar Funding: A Source of Financial Vulnerability, Chapter 6: Sustainable Finance: Looking Farther. Important Reports and Indexes Released by International Organisations: In a material economic slowdown scenario, half as severe as the global financial crisis, corporate debt-at-risk (debt owed by firms that cannot cover their interest expenses with their earnings) could rise to $19 trillion—or nearly 40 percent of total corporate debt in major economies, and above postcrisis levels. The pandemic can pose risks to banks’ capital adequacy if it is long-lasting. World Economic Outlook: IMF: 11. The World Economic Outlook (WEO) is an IMF report that provides analysis and forecasts of economic developments and policies in its member countries. ; The report encapsulates state of the global economy and highlights risks and uncertainty that threaten growth. However, the emerging trends in the global economy and … Focus on post-pandemic financial reform agenda non-financial sectors: Risk-taking in the lower-for-longer interest-rate environment to be contained with effective prudential measures. The Global Financial Stability Report (GFSR) is a semiannual report by the International Monetary Fund (IMF) that assesses the stability of global financial markets and emerging-market financing. The Global Financial Stability Report focuses on the financial ramifications of the economic issues that are highlighted in the IMF’s World Economic Outlook Report. The report assessed that India’s financial system remains stable in the backdrop of improving resilience of the banking sector. Emerging markets borrowing in US dollars are particularly vulnerable to cutbacks in cross-border lending, because their ability to substitute into alternative funds in US dollars or even other currencies is limited. World Economic Outlook: IMF: 11. 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