Chart 19 Share of new loans to firms by fixation period (left panel); relation between firms’ default risk and net leverage by debt servicing cost (right panel) (left panel: share as a percentage of new loans; right panel: x-axis – net debt level as a percentage of total assets; yaxis – expected default frequency in percentages)  Sources: ECB (MIR), Worldscope, Refinitiv, Moody’s and ECB staff calculations.
The FSB is monitoring and analysing developments closely and stands ready to facilitate global coordination of financial policies, where necessary, to minimize the risk of a disorderly exit. This is being underpinned by the FSB’s new financial stability surveillance framework. The framework enables us to identify global financial vulnerabilities in a systematic manner. It draws on the collective expertise of the FSB’s broad membership.