IMF：Pasar berkembang harus waspada terhadap risiko fluktuasi modal non-perbankan

People’s Financial News 7 April - The International Monetary Fund (IMF) released the second chapter of the “Global Financial Stability Report” in advance on the 7th.
This chapter emphasizes that although non-bank financial investment institutions can provide substantial funds to emerging market economies, these institutions are highly sensitive to global risks, with capital volatility significantly higher than that of traditional banking institutions, posing challenges to emerging markets.
The IMF is concerned that non-bank institutions are extremely sensitive to changes in global risks and may suddenly withdraw funds when external environments change.
This will intensify external financing pressures on emerging market economies in a short period, increase borrowing costs, trigger currency devaluation, and thus hinder economic growth.
The IMF mentioned that, amid ongoing conflicts involving the US, Iran, and Israel, some emerging market economies are experiencing capital outflows from non-bank institutions, and the financial risks brought by this are worth vigilance.
The IMF recommends that policymakers in emerging markets closely monitor the composition of non-bank institutional investments when assessing financial stability risks, take measures to mitigate the impact of capital flows, and attract more stable, long-term external investments.
(Xinhua)