Cyber risk to stability

Financial regulators need to be vigilant

Financial stability risks can emanate from a variety of sources. The state of macroeconomic policies, the health of the banking and financial system, financial sector regulations, or a shock like a pandemic could disturb financial stability. Sudden policy changes in systemically important countries, such as a significant increase in policy interest rates by the US Federal Reserve, could also pose risks, as was observed during the recent monetary policy tightening. But most of these risks are well understood by policymakers and efforts are made to minimise them. The International Monetary Fund (IMF) this week released an analytical chapter from its