IMF – As the recovery has gained traction, risks to global financial stability have eased, but stability is not yet assured. Our estimates of banking system write-downs in the economies hit hardest from the onset of the crisis through 2010 have been reduced to $2.3 trillion from $2.8 trillion in the October 2009 Global Financial Stability Report. However, the aggregate picture masks considerable differentiation within segments of banking systems, and there remain pockets that are characterized by shortages of capital, high risks of further asset deterioration, and chronically weak profitability. Deleveraging has so far been driven mainly by deteriorating assets that have hit both earnings and capital. Going forward, however, pressures on the funding or liability side of bank balance sheets are likely to play a greater role, as banks reduce leverage and raise capital and liquidity buffers. Hence, the recovery of private sector credit is likely to be subdued, especially in advanced economies. more> http://bwbx.io/TlB8
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