TIL Desk/Business/Washington-India has warned about the risks of low and negative interest rates and “significant loan impairments” in the banking system to the global financial stability and called for “delevaraging” balance sheets to spur growth.
“Disorderly deleveraging of private debt could also impact growth. In order to guard against these risks, policy frameworks would have to be strengthened by accumulating buffers and deleveraging balance sheets,” Finance Minister Arun Jaitley said at the annual fall meeting of the IMF and the World Bank.
“Gains from product and labour market reforms and strengthening of risk management practices to address balance sheet vulnerabilities would be helpful in further enhancing resilience,” he said. In his address, Jaitley said global financial stability appears to have improved with easing external financing conditions and some recovery in commodity prices.
