Previous Year Question
‘Global Financial Stability Report’ is prepared by the
European Central Bank
International Monetary Fund
International Bank for Reconstruction and Development
Organisation for Economic Co-operation and Development
Correct Answer: B
Detailed Solution
The Global Financial Stability Report—GFSR is one of the flagship reports of the International Monetary Fund. It assesses the condition of the global financial system and financial markets and identifies vulnerabilities and systemic risks that could threaten global financial stability.
The report primarily examines:
The condition of the global banking system and non-bank financial institutions.
Volatility in equity, bond and foreign-exchange markets.
Sovereign and corporate debt levels and debt-servicing risks.
Changes in interest rates, liquidity and credit conditions.
Foreign financing and capital flows to emerging-market economies.
Contagion and systemic risks arising from interconnected financial institutions.
Financial-market consequences of domestic and global economic imbalances.
The GFSR is normally published twice a year, around the IMF-World Bank Spring Meetings and Annual Meetings.
It should be distinguished from the IMF’s other flagship reports:
The World Economic Outlook—WEO examines global growth, inflation, employment and other macroeconomic developments.
The Global Financial Stability Report—GFSR focuses on financial markets, financial institutions and systemic financial risks.
The Fiscal Monitor examines government debt, fiscal deficits and public finances.
Thus, the report is not prepared by the European Central Bank, IBRD or OECD.
Current position (September 2026)
As of September 2026, the latest GFSR listed by the IMF was released on 14 April 2026, titled Global Financial Markets Confront the War in the Middle East and Amplification Risks. The GFSR, therefore, continues to be an IMF flagship publication on global financial stability.