IMF Urges Bank Regulators to Toughen Stance After March Turmoil

Regulators around the world should subject banks to tougher stress tests and step up scrutiny to minimize vulnerabilities in the sector, according to the International Monetary Fund.

The international organization recommended that the financial watchdogs bolster their risk assessments, increase examinations and ensure that frameworks are in place to manage crises. Banks generally have managed the high interest-rate environment well, but lenders are facing stresses as loan demand declines and funding costs increase, according to the IMF.

The health of the banking industry was briefly called into question earlier this year after the collapses of several lenders, including Silicon Valley ...