Global financial stability has continued to improve but there were still areas of risk ahead, according to a new report from the International Monetary Fund (IMF).
The IMF described a stronger overall economic outlook, with strong economic growth. It said that long-term interest rates have risen in many countries, boosting the earnings of banks and insurance companies.
Some risks in emerging markets have fallen as the prices of the commodities some of them produce, such as oil, have partly recovered from recent lows. Many banks in these countries have strengthened their financial foundations.
However, the IMF warned there are risks ahead nonetheless, with political and policy uncertainty around the globe, particularly in the United States and Europe.
It also sounded the alarm about rising debt levels in China, after it was reported earlier this week that China’s economic growth in the first quarter of this year had been fuelled by a faster expansion of credit.
The IMF's also repeated its warning about the possibility of more protectionist trade policies creating new barriers to imports.