By Tobias Adrian, Financial Counsellor and Director of the IMF's Monetary and Capital Markets Department, and Fabio Natalucci, Deputy Director of the Monetary and Capital Markets Department
In the United States, the ratio of corporate debt to GDP is at record-high levels. In several European countries, banks are overloaded with government bonds. In China, bank profitability is declining, and capital levels remain low at small and medium-sized lenders.
Vulnerabilities like these are on the rise across advanced and emerging market economies, according to the IMF's latest Global Financial Stability Report. They aren't all setting