The leader of the bank for central banks—the Bank for International Settlements (BIS)—is sounding the alarm. 

Just this week, BIS general manager Agustín Carstens told reporters that “The global economy is at a critical juncture.” And according to the bank’s just-released annual report, if inflation isn’t tamed and consumer prices remain high for much longer, banks could see credit losses of a “similar order of magnitude” to those of the 2008 financial crisis. 

The comments are jarring, particularly on the backs of three bank failures earlier this year. BIS’s typical stances—which are usually more reserved—also lend gravitas to the statements.

“The resilience of the financial system will be tested again,” the report reads. “Pockets of vulnerability remain. Recent events have shown how the failure of even comparatively small institutions can shake confidence in the overall system.”

Learn more about your ad choices. Visit megaphone.fm/adchoices