Worldwide warnings of escalating risk

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The International Monetary Fund (IMF) and the European Systemic Risk Board (ESRB) have both issued stern warnings on global risk.

Since the previous ESRB general board meeting on June 22, 2011, "risks to the stability of the European Union (EU) financial system have increased considerably", said the board in a statement on Wednesday.

"Key risks stem from potential further adverse feedback effects between sovereign risks, funding vulnerabilities within the EU banking sector, and a weakening of gr

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