Conclusion Last month in Tokyo, the International Monetary Fund rightly asked whether the financial system is safer today than on the eve of the crisis.11 The answer is yes. Despite the challenging economic environment, banks have substantially increased capital and liquidity. They are more actively managing risks. Countries are diligently implementing measures so that they can resolve failing institutions.
The infrastructure of derivatives markets is being transformed to reduce systemic risks. The size of the shadow banking sector has fallen by 20 percentage points of GDP, back to levels last seen in 2004–05. However, while progress has been made, the global financial system is still not as safe as it needs to be.