World: Global Financial Stability Report: Global Financial Markets Confront the War in the Middle East and Amplification Risks (April 2026) [EN/AR/RU/ZH/JP]

Country: World Source: International Monetary Fund Please refer to the attached files. The April 2026 Global Financial Stability Report assesses elevated financial stability risks amid the war in the Middle East, highlighting how multiple amplification channels could test resilience—and why decisive policy action is needed to safeguard global stability Global financial stability risks are elevated. The global financial system is confronting the ongoing war in the Middle East, potential inflationary pressures, rising risks of further tightening in financial conditions, and several amplification channels that could lead from market turmoil to financial instability. Cross-border portfolio flows, largely intermediated by nonbank financial institutions, offer important opportunities but also carry risks, including heightened sensitivity to shifts in global risk sentiment.

Original source: Relief Web