Officials responsible for the world’s biggest economies must be “vigilant” to the risks posed by high debt levels, volatile commodities markets and deeper-than-expected scarring from the Covid-19 pandemic, the world’s most influential regulator has warned.
Klaas Knot, the Netherlands’ central bank chief and head of the Basel-based Financial Stability Board, told economic officials in a letter ahead of meetings in Bali that a deterioration in economic conditions “may test financial [system] resilience”.
The central bank governors and finance ministers of 19 of the world’s most powerful countries are meeting against a perilous economic and geopolitical backdrop as countries lurch towards recession while Russia’s invasion of Ukraine continues. Representatives from the EU are also attending, making up the 20th member of the gathering. A Russian delegation received the letter, but its attendance could not be confirmed.