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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).

Economics, Environment, Finance sector development, Health

COVID-19 highlights the need to strengthen environmental risk management and scale-up sustainable finance and investment across Asia

COVID-19 highlights the need to strengthen environmental risk management and scale-up sustainable finance and investment across Asia
Like the rest of the world, Asia has been hit hard by the COVID-19 crisis. While some countries have been able to contain the spread of the virus relatively well, the disruption of supply chains, sharp decline in global demand, and the large-scale withdrawal of capital have led to severe economic contractions across the region.

Economics, Finance sector development

Characterizing financial cycles: Are emerging markets different?

Characterizing financial cycles: Are emerging markets different?
A feature of the academic literature on financial cycles relates to the fact that it almost exclusively focuses on selected advanced economies, the findings of which may not necessarily hold for emerging economies. Global capital flow developments and monetary policies in advanced economies mean that financial cycle dynamics may differ substantially in emerging economies, not only in terms of turning points but also with regard to which asset market cycle best characterizes the financial cycle.

Finance sector development, Governance and public sector management

Systemic power imbalances in responsible investments

Systemic power imbalances in responsible investments
The recent surge of interest in environmental, social, and governance (ESG) investments has brought with it closer scrutiny of the way in which ESG factors are evaluated as conditions before an investment can be categorized as such. Environmental factors have been receiving a lion’s share of the attention in these investments, which have been riding on the institutional clout lent unto them by green growth.

Finance sector development, Information and Communications Technology

Closing the gender gap in peer-to-peer lending

Closing the gender gap in peer-to-peer lending
Financial inclusion for women has been embraced by policy makers as an important development priority. However, despite women having lower risk preferences and higher creditworthiness, the gender gap in access to finance is still prevalent in the traditional credit market. This is due to various factors, such as differences in employment opportunities, legal obstacles, cultural norms, and limited access to the guarantee mechanism, among others.

Economics, Finance sector development

What explains the growing global demand for cash?

What explains the growing global demand for cash?
In recent years, cashless payment methods have become increasingly prevalent around the world due to the use of various innovative tools and convenient financial services through mobile phones. This trend is contributing to greater efficiency in our economies and financial systems. Nevertheless, a puzzling phenomenon is that the demand for cash has been rising in many countries. This means that growth in the demand for cash reflects factors other than the transaction motive used for payment. These factors might include opportunity cost, precautionary motives, and other motives such as aging and demand from abroad.