The tripling of IMF resources has significantly increased the Fund’s lending capacity, and the new SDR allocation has provided additional liquidity to the global economy. At the same time, the launch of the Flexible Credit Line will add flexibility to the Fund’s lending framework. The best way to manage a crisis is to prevent it.
The present crisis has revealed that macroprudential factors play an important role in determining the size, nature, and propagation of systemic risk. Therefore, it is essential to establish an effective framework for macroprudential supervision that will ensure both the systematic analysis of risks and the formulation of policies to address such risks.