G20 watchdog warns of potential market crash amid asset price surge

G20 risk body flags potential market crash, citing high asset prices and silent vulnerabilities.

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G20 watchdog warns of potential market crash amid asset price surge

G20 watchdog warns of potential market crash amid asset price surge
The G20’s Financial Stability Board issued a cautionary note that global markets may be overextending, with valuations misaligned and systemic vulnerabilities growing. The FSB pointed to rising sovereign debt, elevated equity multiples, and opaque leverage in shadow banking. Its warning comes amid increased geo-political tension and signs of economic slowdown. The body urged member states to prioritize financial stability, enforce earlier reforms, and coordinate macroprudential policies to defuse the buildup of hidden risks across cross-border capital flows and institutional balance sheets.
Tags:
  • global
  • markets