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Climate change, Finance sector development

ESG investment for promoting net-zero carbon emissions

ESG investment for promoting net-zero carbon emissions
ESG investment aims to encourage companies to consider environment (E), social (S), and corporate governance (G) issues by raising their long-term corporate value. It is becoming indispensable for filling the funding shortfalls needed to achieve the Paris Agreement’s goal of limiting the global temperature increase this century to well below 2 degrees Celsius above preindustrial levels, and desirably within 1.5 degrees Celsius, as well as to encourage the transformation of corporate behavior toward net-zero emissions.

Economics, Finance sector development Climate change, Finance sector development

Revisiting green bond market development in Viet Nam

Revisiting green bond market development in Viet Nam
Green bonds (GBs) are being used around the world as a financial tool for raising capital for projects that can benefit the environment (World Bank 2019). The money raised by GB issuances can fund investment in programs that enhance adaptation and mitigate the effects of climate change, such as projects for clean energy, public transport, and clean water. The GB concept was proposed by the World Bank in its Strategic Framework on Development and Climate Change in 2008 to help countries around the world raise capital for strategies for solving the problems of air pollution and global climate change (Trang 2015).

Economics, Finance sector development

Achieving resilient emerging market economies amid the macroeconomic challenges of the 21st century

Achieving resilient emerging market economies amid the macroeconomic challenges of the 21st century
Emerging market economies have faced a host of challenges in the post-global financial crisis (GFC) environment. The GFC environment was shaped by the confluence of four key developments. The first was financial globalization and de-regulation, processes that started in the late 1970s in Organisation for Economic Co-operation and Development (OECD) countries. These later spread to emerging markets in the 1990s and 2000s and transformed the global financial system into a complex cobweb of global networks, exposing countries to financial shocks transmitted by volatile bursts of capital inflows and outflows of “hot money.”

Economics, Finance sector development, Information and Communications Technology

Fintech development transforming the financial landscape in the People’s Republic of China

Fintech development transforming the financial landscape in the People’s Republic of China
Financial technology (fintech) is rapidly changing the financial landscape in the People’s Republic of China (PRC), with important implications for financial inclusion and macroeconomic stability (Huang 2020). Fintech in the PRC started at the end of 2004 when the mobile payment service Alipay first came online. However, fintech did not grow dramatically until 2013, when the online money market fund Yu’ebao started to receive investments from Alipay users.

Economics, Finance sector development, Information and Communications Technology

Digital transformation poses potential risks for stability and the financial industry

Digital transformation poses potential risks for stability and the financial industry
Digital transformation is changing how and by whom financial services are provided, bringing benefits to consumers in the form of expanded and simplified access to financial services. However, this transformation is also affecting the financial services industry in ways that could lead to greater risks to systemic financial stability.

Economics, Finance sector development, Health

COVID-19 and policy responses through the lens of global asset markets and capital flows

COVID-19 and policy responses through the lens of global asset markets and capital flows
The coronavirus disease (COVID-19) pandemic and the resulting lockdowns have led to an unprecedented economic contraction and turbulence in financial markets, which initially caused the largest ever outflows of portfolio capital from emerging market economies (EMEs). Globally, governments have responded to the crisis with substantial fiscal stimulus packages. In addition, central banks around the world have eased monetary policies, with many EME central banks also implementing quantitative easing (QE) measures for the first time.

Climate change, Economics, Environment, Finance sector development

Exploring the link between climate change and sovereign risk

Exploring the link between climate change and sovereign risk
Climate change can have a material impact on sovereign risk through direct and indirect effects on public finances. In addition, climate change raises the cost of capital in climate vulnerable countries and threatens debt sustainability. Governments must climate-proof their economies and public finances or potentially face an ever-worsening spiral of climate vulnerability and unsustainable debt burdens.

Finance sector development, Governance and public sector management, Health, Regional cooperation and integration

The impacts of COVID-19 on financial stability and regional financial safety nets in ASEAN

The impacts of COVID-19 on financial stability and regional financial safety nets in ASEAN
The Association of Southeast Asian Nations (ASEAN) is making strong efforts to maintain financial stability amid the coronavirus disease (COVID-19) pandemic, mostly through national financial emergency measures for each member state. As a region, ASEAN has not yet formed a regional financial safety net to deal with a crisis like COVID-19.

Economics, Environment, Finance sector development

Achieving policy objectives for green bonds in ASEAN

Achieving policy objectives for green bonds in ASEAN
The latest Intergovernmental Panel on Climate Change report, Global Warming of 1.5 ºC, notes the importance of mobilizing green finance for limiting global warming to 1.5 degrees Celsius and preventing catastrophic climate change. In line with this, some countries have been implementing policies to support green bonds. Green bonds are debt securities whose proceeds are used to fund environmental projects, including climate change mitigation and adaptation. Therefore, unlike conventional bonds, green bonds finance projects with clear environmental benefits (ICMA 2018).