IMF Report: Global Financial System Stuck in a Growth Slump, ‘Overly Complex’

09/26/2012 The global financial system remains “overly complex” as reforms bog down in the post-recession economic slump, the IMF warned in a report Tuesday.

Subprime Crisis Diagram. Courtesy of Farcaster/CC-BY-SA-3.0

And central banks’ record-low interest rates may be creating future problems by encouraging excessive risk taking, the very behavior that reforms are trying to curb, the International Monetary Fund said in its latest Global Financial Stability Report.

The IMF said that financial systems were little changed five years after the start of the US subprime mortgage crisis that plunged the global economy into recession.

“The data suggest that financial systems are still overly complex… and the too-important-to-fail issues are unresolved,” the IMF report said.”

Full report