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FSB Warns Middle East Conflict Threatens Global Financial Stability

4/14/2026

Summary

Story summary

Financial Stability Board (FSB), led by Andrew Bailey, warns the Middle East conflict could threaten global financial stability.
Bailey notes increased volatility in energy prices and government bond yields in financial markets.
He warns high asset valuations and concentrated nonbank leverage could trigger simultaneous shocks.
The FSB will monitor sovereign bond markets, asset valuations, and private credit, with a report on private credit vulnerabilities expected soon.

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Story summary

Financial Stability Board (FSB), led by Andrew Bailey, warns the Middle East conflict could threaten global financial stability.
Bailey notes increased volatility in energy prices and government bond yields in financial markets.
He warns high asset valuations and concentrated nonbank leverage could trigger simultaneous shocks.
The FSB will monitor sovereign bond markets, asset valuations, and private credit, with a report on private credit vulnerabilities expected soon.