Tunis:Global financial stability is under scrutiny as the International Monetary Fund (IMF) has released its annual Global Financial Stability Report. The report emphasizes the urgent need to enhance financial systems worldwide to avert a potential crisis.
According to Thai News Agency, the report was unveiled during the 2026 Annual Meeting of the Board of Governors of the International Monetary Fund and the World Bank Group. Athanasios Vamvakidis, Deputy Director of Financial Markets and Capital at the IMF, highlighted that despite a strong risk appetite and robust returns in the market, primarily driven by advancements in artificial intelligence (AI), resilience does not equate to security. The IMF identified three primary risks potential market corrections due to unrealistic AI earnings forecasts, rising bond yields across different countries, and cyber threats that could undermine financial services and public trust.
Mr. Vamvakidis stressed that these risks, if not addressed, could expose vulnerabilities and lead to systemic issues. He noted that while the banking sector is largely resilient, certain banks are at risk due to insufficient capital and exposure to non-bank financial institutions (NBFIs), which face liquidity challenges and increased leverage.
Emerging markets, although fundamentally strong, are at risk due to weakening economic buffers and reliance on less transparent funding sources. The IMF advises that countries should bolster their economic resilience by maintaining sustainable debt levels, controlling inflation, and enhancing cybersecurity.
For Thailand, a key exporter of AI hardware, market adjustments in the AI sector could have significant impacts. Jason Wu, Assistant Director at the IMF, warned that such changes could affect not only Thai exports but have a global impact, potentially leading to increased risk sentiment, currency weakening, and capital outflows. The IMF recommends that emerging markets like Thailand strengthen their economic resilience and allow exchange rates to serve as shock absorbers against external threats.