Some financial institutions and banks are still “simply unprepared” for further turbulence caused by higher interest rates, the International Monetary Fund has warned in the wake of the turmoil at four lenders last month.
In an assessment of global financial stability risks, the IMF said more banks and asset managers could be picked off in a punishing environment of high rates and market volatility.
Its alert comes after the banking sector was rocked by the collapses of three American lenders and the forced sale of Credit Suisse, marking the worst bout of market instability since the 2008 global financial crisis.
The IMF said investors and policymakers had not moved to guard against the consequences of rapidly rising borrowing costs over the past year. “Market
