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IMF said Crisis in banking sector can affect global economy

BTJ Desk Report
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Kristalina Georgieva, head of the International Monetary Fund (IMF), has expressed fear that the bankruptcy and crisis of various banks in various parts of the world, including the big US bank, may have a negative impact on the global economy. According to her, the world economy is going to be in a bit of turmoil soon. So she warned the market regulators of the world in advance. British media The Guardian reported recently, Kristalina Georgieva, who was visiting Beijing on Sunday (March 26), made this comment at a press conference.

She said that the global economy may face risks due to the recent storm in the banking sector. Therefore, Cristalina advised the world market regulators to ‘keep an eye’ on the issue. The managing director of the IMF said that inflation has emerged as a major problem around the world. To deal with that problem, the central banks of all countries around the world are trying to raise interest rates. Increased interest rates have put pressure on borrower countries. It has even put pressure on the economies of creditor countries. According to Cristalina, all this has put pressure on the broader financial system.

“This transition from prolonged low interest rates to suddenly high interest rates has many side effects,” said Cristalina. One of which is the extra pressure on the economy, the economy becoming weak or oversensitive, she added that on one hand, the Corona epidemic, on the other hand, the Russia-Ukraine war has affected the world economy. Global financial growth has slowed to below 3 percent.

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