Newsletter October 2012: Crisis is delaying financial reforms, warns IMF

WASHINGTON – The continuing banking and sovereign debt crisis in some countries and regions is delaying a reboot of the financial system on to a safer path, according to the International Monetary Fund (IMF). It says in its latest Global Financial Stability Report (GFSR) that “the data suggest that financial systems are still overly complex, banking assets are concentrated, with strong domestic interbank linkages, and the too-important-to-fail issues are unresolved.” Innovative products, it adds, “are already being developed to circumvent some new regulations. These same traits have been linked to the crisis, suggesting financial systems remain vulnerable.”