BIS chief warns soaring debt, market changes could complicate future crisis response
· Business · Reuters, CNBC
BIS chief Augustin Carstens warned that rising global debt and evolving financial market structures may hinder effective responses to future crises. He highlighted that sovereign and corporate debt levels have surged significantly since the last major financial downturn. Carstens noted that market liquidity has become more fragile due to shifts toward non-bank financial intermediation. The BIS chief made these remarks during a speech at the International Monetary Fund's spring meetings. He urged policymakers to strengthen resilience and coordination ahead of potential shocks.
Why it matters
Global financial stability could be at risk if debt burdens limit crisis-response tools. This affects economies worldwide, including emerging markets like India that rely on stable capital flows.
Read the original report — Reuters
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