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Banking reforms have stalled, IMF warns

Regulators around the world must not rest on their laurels when it comes to implementing reforms in the banking industry, a new report has urged.

According to analysis in the International Monetary Fund's (IMF) latest Global Financial Stability Report - which was published yesterday (25 September) - there is still plenty of work to do to stabilize the banking sector.

The IMF indicated that while proposed changes to rules already put forward are "positive" and represent steps in the right direction, regulators are yet to create a "safer set of financial structures", meaning some difficult issues remain in place.

With this in mind, the organization has called on bodies to enforce alterations to improve conditions in a market that remains "vulnerable", as well as avoiding focusing solely on major banks.

"Reliance on non-deposit funding is very high, linkages across domestic financial institutions are very strong and complex financial products are taking on new forms," the IMF added.

By Gary Cooper