While global financial stability has improved in recent months, some vulnerabilities remain, according to the IMF’s latest Global Financial Stability Report.

IMF Financial Counsellor Tobias Adrian said Wednesday that nations should move to bolster the advances.

“Since our last Global Financial Stability Report in October, financial stability has strengthened, but policy uncertainty is high. We at the IMF believe that policymakers need to get the policy mix right,” he added

Adrian outlines some key priorities.

“Policy uncertainty reflects risks. At the IMF, we see two. In the U.S., concerns about fiscal policy could push up interest rates and global risk premia. Inward looking policies could lead to protectionism, harming global growth, spilling into emerging markets,” he said.

To secure global financial stability, Adrian urged policymakers around the world to address specific concerns.

“Our analysis in the GFSR suggests four policy priorities. In the U.S., the economic benefits of stimulus need to be balanced against the buildup of leverage in the corporate sector. In Europe, structural weaknesses in the banking system need to be addressed. In emerging markets, resilience and the corporate and banking sectors need to be enhanced. Globally regulatory reform efforts of the financial sector need to be completed, particularly the Basel III enhancements.”