Recent events have also illustrated the potential risks to the world economy arising from financial market problems, and the threat of chain reactions in the financial sector. This has demonstrated the paramount importance of mitigating systemic risk by better understanding and alleviating the factors that bear on it.
Disabling shocks to the global financial system can arise from a variety of factors and circumstances, including macroeconomic weaknesses, the collapse of major individual institutions, and weaknesses in the infrastructure that underpins and connects financial systems. That requires transparency, close monitoring and, if necessary, coherent and appropriate action to forestall accelerating developments.