IMF: Soon to consider the banking crisis over

The International Monetary Fund has warned it is too early to consider over the turmoil that has rocked the world‘s financial system and said the banking crashes will likely be a drag on global economic growth.

Despite vigorous responses by the authorities to stem the consequences of the bankruptcies of lenders in March, financial markets remain fragile and under stress, according to the IMF in its semi-annual report on global financial stability.

“The resilience of the global financial system has been severely tested,” the fund said. “It remains to be seen whether the measures taken so far have been sufficient to fully restore confidence in markets and institutions.”