The head of the International Monetary Fund (IMF), Kristalina Georgieva, called on Sunday to "remain vigilant" in the face of "uncertainty" still "high" in the financial sector, comments that come after the recent setbacks of Western banks. The collapse of California-based Silicon Valley Bank (SVB) on March 10 has raised concerns about the strength of the banking sector in the United States and Europe.



The first European victim, Credit Suisse was taken over by its compatriot UBS last Sunday for a fraction of its value on the stock market. "It is clear that risks to financial stability have increased," Kristalina Georgieva said Sunday at the China Development Forum, an event organized in Beijing by the Chinese government. The acquisition of Credit Suisse by UBS, led by the Swiss authorities, as well as recent central bank measures to improve access to liquidity, prevented panic but failed to bring stability to the markets.

'Need to remain vigilant'

"Policymakers have taken decisive action in response to risks to financial stability," Georgieva said in her speech. "These measures have to some extent eased market tensions, but uncertainty is high, underscoring the need for continued vigilance." Banking stocks on European stock exchanges fell further on Friday.

The recent statements of Christine Lagarde, the president of the European Central Bank (ECB), reaffirming the resilience of the banking system, and those of French President Emmanuel Macron or German Chancellor Olaf Scholz, which were intended to be reassuring, have not been able to calm spirits. US President Joe Biden said Friday in Ottawa (Canada) that the "banks are doing pretty well" and that he did not see anything "about to explode". He acknowledged, however, that it would take "a little time for things to calm down."

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