Global Financial Stability Report is published by International Monetary Fund (IMF)
The report provides an assessment of the global financial system and markets and addresses the emerging market financing in a global context. It also focuses on the current market conditions, highlighting systemic issues that could pose a risk to financial stability, and sustained market access by the emerging market borrowers.
India’s growth trajectory may be hampered by the medium-term risk due to excess corporate debt and this also raises risks to banks.
The report highlights that while emerging economies like Brazil, South Africa etc have been impacted by macro-economic stability, India, on the other hand, benefits from a stable political environment.
Higher funding costs and lower corporate earnings could also result in significantly higher debt-at-risk for non-financial firms in India.
