Reminding that she faced a great economic shock last year due to the new type of coronavirus (Kovid-19) epidemic, Georgieva stated that thanks to the extraordinary monetary and financial measures taken, we did not face another global financial crisis. Pointing out that many mutual funds were greatly affected by the turmoil in the financial market, Georgieva explained that the first shock was further strengthened by rapid fund outflows and rapid sale of assets.
"Today, the global economic recovery continues, but there is growing uncertainty, including concerns about prolonged asset valuations. So it's no surprise that policymakers and regulators are keeping a close eye on mutual funds," Georgieva said. Pointing out that in the last two decades, non-bank financial institutions have started to play such an important role as holding about 50 percent of global financial assets, Georgieva said that investment funds are vital for prosperity. "We need to increase the resilience of mutual funds." said.
Emphasizing that policy makers should prioritize strengthening liquidity risk management, Georgieva stated that they believe there is room for more prescriptive regulatory approaches in the field of mutual funds. Georgieva stated that lessons learned in the banking sector can be benefited from in this area, and that risk management in banks thanks to stronger regulatory frameworks implemented after the global financial crisis. said to have strengthened significantly.
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