The head of the International Monetary Fund says the global economy is not growing at a fast enough pace and faces a number of risks to recovery.
Christine Lagarde warned that a threat of global recession remains and called for coordinated policy action, the BBC reports.
Ms Lagarde says this action should include mandatory recapitalisation of European banks.
"Developments this summer have indicated we are in a dangerous new phase," she told a US Federal Reserve meeting at Jackson Hole in the United States.
"The stakes are clear; we risk seeing the fragile recovery derailed - so we must act now."
Following on from the financial crisis of 2008/09, growth in the US and Europe remains patchy, while debt worries in both continues to shake market confidence.
