‘Global Financial Stability Report’ is prepared by the

The correct answer is International Monetary Fund (IMF).

The Global Financial Stability Report (GFSR) is a flagship publication prepared and released by the International Monetary Fund (IMF). To understand why this is the case, let us break down the reasoning step by step.

Step 1: What is the IMF?
The International Monetary Fund is an international organization founded in 1944 at the Bretton Woods Conference. Its core mandate is to ensure the stability of the international monetary system — the system of exchange rates and international payments that enables countries and their citizens to transact with each other. It currently has 190 member countries and serves as the global watchdog for financial and macroeconomic stability.

Step 2: What is the Global Financial Stability Report?
The GFSR is one of the IMF's most important and widely referenced flagship publications. It is published twice a year — typically in April and October — coinciding with the IMF and World Bank Spring and Annual Meetings. The report provides a comprehensive assessment of global financial markets and identifies potential systemic risks to financial stability across the world.

Step 3: Why does the IMF publish this report?
Since monitoring global financial conditions and preventing systemic crises falls squarely within the IMF's institutional mandate, it is the natural body to produce such a report. The GFSR highlights vulnerabilities in the global financial system, tracks capital flows, assesses risk appetite in markets, and makes policy recommendations to member governments and central banks — all functions that align directly with the IMF's surveillance and advisory role.

Step 4: Why are the other options incorrect?

- European Central Bank (ECB): The ECB publishes its own Financial Stability Review, but this covers only the Eurozone, not the entire globe. It is not the GFSR.
- International Bank for Reconstruction and Development (IBRD): The IBRD is the lending arm of the World Bank Group and focuses on development financing for middle-income countries. It does not publish the GFSR.
- Organisation for Economic Cooperation and Development (OECD): The OECD publishes economic outlooks and policy research, but it does not produce the Global Financial Stability Report.

Step 5: Key Fact to Remember
The IMF publishes three major flagship reports that are critical for competitive examinations:

1. World Economic Outlook (WEO) — global economic growth forecasts
2. Global Financial Stability Report (GFSR) — global financial market stability
3. Fiscal Monitor — global public finance and fiscal trends

All three are published by the IMF, making it the premier institution for global economic and financial surveillance. Therefore, the International Monetary Fund is unambiguously the correct answer to this question.