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Banks must raise billions to avoid chaos, warns IMF

Banks must raise billions more in capital to fend off a recession relapse, warns the International Monetary Fund.

In an update to its Global Financial Stability Report and World Economic Outlook, and reported in the Telegraph, the IMF says with governments including the UK and the US borrowing so much in the next few years, there is an increasing chance of a sovereign debt crisis. As a result, the world’s biggest banks could face financial chaos and a funding crisis unless billions in capital is raised, says the IMF.

The report said the slow recovery to banks’ balance sheets could leave them open to a whole range of shocks in the coming months.

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