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Amid ongoing concerns about the risks to financial stability posed by the Covid-19 outbreak, global policymakers and industry players met to discuss efforts to limit the systemic damage.

Senior regulators, central bankers and government representatives held a virtual meeting on Tuesday to discuss the ongoing policy responses to the global pandemic. The meeting also included about 30 major banks, insurers, asset managers, market infrastructure firms and credit rating agencies.

Participants examined how regulatory and other policy measures had preserved financial stability, and how financial institutions can deal with rising solvency risks.

“The global financial system entered the crisis with much enhanced resilience and, with central bank intervention, the liquidity stress in March was largely contained. But the world still faces an unprecedented level of uncertainties,” said the meeting’s chair, Himino Ryozo, chair of the Financial Stability Board (FSB) committee that arranged the meeting, and vice minister for international affairs at Japan’s Financial Services Agency (FSA).

“Participants discussed issues which may arise in different phases of the crisis under a range of scenarios. Insights gained today will help the private and official sectors act to ensure financing to the economy, financial stability, and eventually, a strong recovery,” Ryozo added.

In a separate report, the European Central Bank (ECB) warned about ongoing financial stability risks, including inflated asset prices, fragile investment funds, high debt levels and weak bank profitability.

Risks to financial stability could arise as these vulnerabilities “interact with the pandemic,” it said.

ECB vice-president Luis de Guindos said in a statement that policy measures have “averted a financial meltdown.”

“However, the repercussions of the pandemic on bank profitability prospects and medium-term public finances will need to be addressed so that our financial system can continue to support the economic recovery,” he said.