To ask Mr Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the most recent Global Financial Stability Report from the IMF.

The IMF’s report concludes that risks to global financial stability from emerging markets remain elevated, amid falling risk appetite and increasing market liquidity risks.

The UK Government is alive to any implications of these risks for UK financial stability. The Government established the Financial Policy Committee (FPC) to identify and manage these types of risk to the UK financial system.

The Bank of England’s forthcoming 2015 stress test of the UK banking system will assess its resilience to a deterioration in global economic conditions, particularly in emerging markets.

Furthermore, the UK’s financial regulatory bodies are continuing to work at an international level on risks relating to global financial market liquidity.