Kathmandu. The head of the International Monetary Fund (IMF), Kristalina Georgieva, has emphasized the need for vigilance after the latest upheaval in the banking sector, saying that risks to financial stability have increased.

Speaking at a forum held in Beijing, the Managing Director of the International Monetary Fund expressed his belief that 2023 will be another challenging year when the global economic growth rate has fallen below 3.0 percent due to the ongoing war in Ukraine, economic hardship and the epidemic.

He said at the China Development Forum, "There is a possibility that the world economy will remain weak in the middle of 2023." Uncertainty is extraordinarily high. It is also clear that the risk to financial stability has increased.

With the collapse of Silicon Valley banks and the forced takeover of Swiss bank Credit Suisse by rival UBS, the financial sector appears to have collapsed, he said.