The international banking sector is in increasingly perilous waters, the International Monetary Fund (IMF) has said. The IMF has raised concerns that uncertainty in the sector could hugely impact global growth capability.
Issued earlier this week, the lender’s latest Global Financial Stability Report describes a ‘rapid’ increase in stability risks, with analysts noting “market sentiment remains fragile, and strains are still evident across a number of institutions and markets.”
“While risks are obvious in hindsight, the systemic implications of the existing weaknesses were largely unanticipated by policymakers and investors alike,” the report continued. The IMF singled out smaller regional American banks as being of particular concern and said that authorities should be ready for additional instability and uncertainty.
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