A leading international regulatory agency has urged financial and political heads to guard against complacency amid economic dangers on the horizon.
The emerging risks of global economic downturn and Brexit must be in the plans of global authorities, the Financial Stability Board has said.
The agency was formed in the aftermath of the global financial crisis of 2008, but says that its job is “far from complete” today. While progress has been made in the 10 years since, new dangers have reared their head such as heightening corporate debt, potential cyber attacks, and the loosening of lending standards.
The Guardian reports that FSB chairman Randal Quarles has written an open letter to G20 finance ministers warning of the “false sense of security” on the part of businesses and institutions that has come with rising asset prices and steady economic growth.
Quarles writes: “The outlook for global growth has started to weaken and become more uncertain. Declining long-term interest rates have supported risky asset prices. Corporate and public debt levels continue to rise. And financial markets now expect very low, or even negative, interest rates to persist for the foreseeable future.