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IMF head Kristalina Georgieva haswarnedthat global rise in inequality was likely to result in a financial crisis. She drew parallels between the current trends in regulation of banks to the 1920s when industrialisation resulted in increased wealth for the wealthy and consequently, a financial crisis. She argued that inequality can result in financial instability and called on governments to use regulation to rein in risky banking trends. She also called for more investments in inclusive finance, including mobile banking.
Georgieva wasspeakingat Peterson Institute of International Economics in the US.
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