What is Global Financial Stability Report? Check Themes

Priti Palit

10 hours ago

What is the Global Financial Stability Report (GFSR)?

The Global Financial Stability Report (GFSR) is a semi-annual flagship publication of the International Monetary Fund (IMF), released typically in April and October. It offers a comprehensive and authoritative assessment of where global financial stability stands—identifying emerging risks, trends in financial markets, vulnerabilities among financial actors, and policy recommendations to uphold systemic resilience. The report draws on a rich mix of data, charts, stress-testing frameworks, and analysis by IMF experts to deliver forward-looking insights.

In the April 2025 issue, titled “Enhancing Resilience amid Uncertainty”, the GFSR clearly states that global financial stability risks have risen sharply, owing to tighter global financial conditions and heightened geopolitical and trade uncertainties IMF. By spotlighting top vulnerabilities, the report sets the agenda for policymakers, regulators, and exam-preparing candidates.

Global Financial Stability Reports

To make your preparation easier, here is a year-wise and issue-wise list of Global Financial Stability Reports (GFSR) released by the IMF. You can directly access the official reports by clicking on the links below. These reports are published twice a year (April and October) and provide key insights on global financial risks, stability, and policy measures.

Year	Issued month	Theme	Direct link
2025	April	Enhancing Resilience amid Uncertainty (latest)	Click Here
2024	October	Steadying the Course: Uncertainty, Artificial Intelligence, and Financial Stability	Click Here
2024	April	The Last Mile: Financial Vulnerabilities and Risks	Click Here
2023	October	Financial and Climate Policies for a High-Interest-Rate Era	Click Here
2023	April	Safeguarding Financial Stability amid High Inflation and Geopolitical Risks	Click Here
2022	October	Navigating the high-inflation environment	Click Here
2022	April	Shockwaves from the War in Ukraine Test the Financial System’s Resilience	Click Here
2021	October	COVID-19, Crypto, and Climate: Navigating Challenging Transitions	Click Here
2021	April	Preempting a Legacy of Vulnerabilities	Click Here
2020	October	Bridge to Recovery	Click Here
2020	June	Financial Conditions Have Eased, but Insolvencies Loom Large	Click Here
2020	April	Markets in the Time of COVID-19	Click Here
2019	October	Lower for Longer	Click Here
2019	April	Vulnerabilities in a Maturing Credit Cycle	Click Here
2018	October	A Decade after the Global Financial Crisis: Are We Safer?	Click Here
2018	April	A Bumpy Road Ahead	Click Here
2017	October	Is Growth at Risk?	Click Here
2017	April	Getting the Policy Mix Right	Click Here
2016	October	Fostering Stability in a Low-Growth, Low-Rate Era	Click Here
2016	April	Potent Policies for a Successful Normalization	Click Here
2015	October	Vulnerabilities, Legacies, and Policy Challenges	Click Here
2015	April	Navigating Monetary Policy Challenges and Managing Risks	Click Here
2014	October	Risk Taking, Liquidity, and Shadow Banking: Curbing Excess While Promoting Growth	Click Here
2014	April	Moving from Liquidity- to Growth-Driven Markets	Click Here
2013	October	Transition Challenges to Stability	Click Here
2013	April	Old Risks, New Challenges	Click Here
2012	October	Restoring Confidence and Progressing on Reforms	Click Here
2012	April	The Quest for Lasting Stability	Click Here
2011	September	Grappling with Crisis Legacies	Click Here
2011	April	Durable Financial Stability: Getting There from Here	Click Here
2010	October	Sovereigns, Funding, and Systemic Liquidity	Click Here
2010	April	Meeting New Challenges to Stability and Building a Safer System	Click Here
2009	October	Navigating the Financial Challenges Ahead	Click Here
2009	April	Responding to the Financial Crisis and Measuring Systemic Risks	Click Here
2008	October	Financial Stress and Deleveraging Macro-Financial Implications and Policy	Click Here
2008	April	Containing Systemic Risks and Restoring Financial Soundness	Click Here
2007	September	Financial Market Turbulence: Causes, Consequences, and Policies	Click Here
2007	April	Market Developments and Issues	Click Here
2006	September	Market Developments and Issues	Click Here
2006	April	Market Developments and Issues	Click Here
2005	September	Market Developments and Issues	Click Here
2004	April	Market Developments and Issues	Click Here
2003	September	Market Developments and Issues	Click Here
2003	March	Market Developments and Issues	Click Here
2002	December	Market Developments and Issues	Click Here
2002	September	Market Developments and Issues	Click Here
2002	June	A Quarterly Report on Market Developments and Issues	Click Here
2002	March	A Quarterly Report on Market Developments and Issues	Click Here

Highlights of the Latest Global Financial Stability Report 2025

The April 2025 GFSR, titled “Enhancing Resilience amid Uncertainty,” underscores that global financial stability risks have risen sharply due to a mix of tighter financial conditions and escalating geopolitical tensions.

Key takeaways:

Overvalued Asset Prices
Many markets including equities and corporate bonds are priced above historical norms. A sudden correction could cascade through leveraged sectors and fuel broader instability.
Leverage and Connectedness in Non-Bank Financial Intermediaries (NBFIs)
Shadow banks are increasingly interlinked with traditional banking systems. Their leverage and liquidity mismatches amplify the risk of contagion they can transmit shocks rapidly to the broader financial system.
Sovereign Vulnerabilities in Emerging Markets
With higher refinancing costs and weaker fiscal positions, emerging economies are more exposed. Souring global conditions can push up bond yields, increasing debt servicing pressures.

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Important Themes from Previous Editions

Understanding how the Global Financial Stability Report (GFSR) has evolved over time helps you assess the shifting landscape of financial vulnerabilities and equips you with strong comparative analysis for exams. Below is a detailed look at the most recent editions (2022–2024), each with its key theme, exam-ready summary, and visual suggestion.

October 2024 – Steadying the Course: Uncertainty, Artificial Intelligence, and Financial Stability

Core theme: While near-term financial risks may appear contained, rising economic and geopolitical uncertainty could amplify structural vulnerabilities such as those exposed during a “macro-market disconnect” (when volatility is low despite elevated uncertainty).

Highlights:

Macro-market disconnect: Markets were calm, but underlying risks like rising debt and complacent volatility could worsen shocks.
AI in capital markets:

Heightened market speed and volatility during stress, especially if AI-driven strategies respond uniformly to shocks
Greater complexity and reduced transparency as AI shifts activity toward less-regulated non-bank intermediaries (NBFIs), making oversight more difficult
Operational risks from reliance on key AI service providers, which dominate computational and large language model infrastructure
Cyber and manipulation vulnerabilities, such as advanced phishing, disinformation, or automated fraud using AI tools

April 2022 – Shockwaves from the War in Ukraine: Financial System’s Resilience Tested

Core theme: The war in Ukraine triggered multidimensional threats to financial stability commodity shocks, sovereign-bank feedback loops, and fintech disruption in an unstable global context.

Highlights:

Geopolitical–monetary dilemma: Rising commodity prices challenged central banks’ dual mandate tame inflation without choking growth. Emerging markets, particularly fragile, experienced acute stress.
Sovereign-bank nexus risk: In many emerging economies, banks’ rising holdings of domestic sovereign debt created dangerous feedback loops that could precipitate financial instability.
Fintech and DeFi risks: The rapid growth of fintech and DeFi introduced new vulnerabilities requiring proportional regulation for both incumbents and disruptors

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Why the GFSR is Important for Exam Preparation?

The GFSR stands apart as a core resource for anyone preparing for competitive exams in economics, finance, or public policy (like UPSC, RBI Grade B, SEBI, and similar). Here’s why:

Authority & Credibility
It’s published by the IMF widely accepted as a global standard in monitoring financial health. Referencing the GFSR gives your answers weight and reliability.
Current Data & Examples
Its charts (like Growth-at-Risk, asset valuation tension, sovereign spreads) and real-world cases are extremely useful for exams especially for data-driven or application-focused questions.
Sharply Focused Language
Executive Summaries are crafted to capture key messages in concise sentences perfect for beginning your answers with clarity and purpose.
Policy Insight
Each edition ends with recommendations (e.g., bolster capital buffers, strengthen NBFI oversight, enhance liquidity facilities). These are vital to demonstrate analytical and forward-thinking answers in exam scenarios.

Check out our latest video on Global Financial Stability Report with detailed explanation

FAQs

Q1. What is the Global Financial Stability Report (GFSR)?

The GFSR is a semi-annual flagship publication of the International Monetary Fund (IMF), released in April and October. It assesses global financial stability, highlights risks, and provides policy recommendations to strengthen resilience.

Q2. Who publishes the GFSR and how often?

The IMF publishes the GFSR twice a year — in April and October.

Q3. What is the theme of the latest GFSR (April 2025)?

The April 2025 edition is titled “Enhancing Resilience amid Uncertainty.” It warns of rising financial stability risks due to tighter global financial conditions and geopolitical tensions.

Q4. Why is the GFSR important for exam preparation?

For exams like UPSC, RBI Grade B, and SEBI, the GFSR is a trusted source of global financial data, charts, and analysis. It provides case studies and examples that can be directly quoted in answers.

Q5. What are some important themes from previous GFSR editions?

October 2024: “Steadying the Course: Uncertainty, AI, and Financial Stability” – focused on AI risks and macro-market disconnect.
April 2022: “Shockwaves from the War in Ukraine” – examined geopolitical-financial linkages and sovereign-bank risks.
October 2021: “COVID-19, Crypto, and Climate” – discussed pandemic recovery, crypto markets, and climate challenges.

Priti Palit

Priti Palit, is an accomplished edtech writer with 4+ years of experience in Regulatory Exams and other multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.