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Weekly wire: The global forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Global Financial Development Report 2017/2018: Bankers without Borders
World Bank

Successful international integration has underpinned most experiences of rapid growth, shared prosperity, and reduced poverty. Perhaps no sector of the economy better illustrates the potential benefits--but also the perils--of deeper integration than banking. International banking may contribute to faster growth in two important ways: first, by making available much needed capital, expertise, and new technologies; and second, by enabling risk-sharing and diversification.  But international banking is not without risks. The global financial crisis vividly demonstrated how international banks can transmit shocks across the globe. The Global Financial Development Report 2017/2018 brings to bear new evidence on the debate on the benefits and costs of international banks, particularly for developing countries. It provides evidence-based policy guidance on a range of issues that developing countries face. Countries that are open to international banking can benefit from global flows of funds, knowledge, and opportunity, but the regulatory challenges are complex and, at times, daunting.
 
A Familiar Face: Violence in the lives of children and adolescents
UNICEF

This report presents the most current data on four specific forms of violence – violent discipline and exposure to domestic abuse during early childhood; violence at school; violent deaths among adolescents; and sexual violence in childhood and adolescence. The statistics reveal that children experience violence across all stages of childhood, in diverse settings, and often at the hands of the trusted individuals with whom they interact daily. The report concludes with specific national actions and strategies that UNICEF has embraced to prevent and respond to violence against children.
 

Bankability: More than de-risking projects

Cosette Canilao's picture


Photo: Highways England | Flickr Creative Commons

When PPP investors are asked what they look for in a project, they would typically reply they like projects that are bankable, where risks are fairly allocated between the government and the sponsor. When one probes deeper though as to where they normally invest, you might elicit this response: in a market where there is deep commitment by the government to undertake an effective PPP program. This is a very telling answer sometimes lost to governments that want to pursue ambitious PPP programs. Bankability for a developing country involves more than de-risking projects. More importantly, it entails de-risking the country and its PPP program. 

Powerful panel weighs progress on financial inclusion

Donna Barne's picture
Event Replay


Government leaders and advocates came together during the Annual Meetings to discuss a major development goal – ensuring everyone has access to affordable financial services such as a bank or mobile money account. While a lot of progress has been made on “financial inclusion,” new rules affecting the flow of funds threatens to slow or even reverse some gains.

Financial Inclusion not Exclusion: Managing De-Risking brought together Queen Máxima of the Netherlands, US Treasury Secretary Jack Lew, Zhou Xiaochuan, Governor of the People’s Bank of China, Sri Mulyani Indrawati, Indonesia’s Minister of Finance. Arun Jaitley, India’s Minister of Finance, World Bank Group President Jim Yong Kim, and Juan Manuel Vega-Serrano, the president of the Financial Action Tax Force (FATF), which sets international standards for  combating money laundering, terrorist financing and other related threats.

Some 700 million people were brought into the formal financial system between 2011 and 2014 – a major success – but 2 billion people remain cut off, said Queen Máxima, who is the United Nations Secretary-General’s special advocate for inclusive finance for development.

A new challenge to financial inclusion is a trend toward “de-risking” by banks. Many larger banks are increasingly terminating or restricting business relationships with remittance companies and smaller local banks in certain regions of the world. De-risking has therefore made money transfers more difficult for migrant workers and humanitarian organizations working in war-torn places.

Remittances Market in Latin America: Will mobile money facilitate financial inclusion?

Sonia Plaza's picture
According to the recently-released Migration and Development Brief 26, Latin America and the Caribbean region achieved the most rapid growth in remittance inflows, which rose by an estimated 4.8 percent in 2015, owing to the recovery in labor markets in the United States.

World Bank launches survey to assess the impact of de-risking on remittances

Massimo Cirasino's picture

An increasing number of anecdotal reports about banks’ de-risking remittances service providers and the negative impact these actions have had on the industry have been circulating within the international financial community over the last few years.

Different sources have for instance reported that banks are supposedly cutting off access to banking services to money transfer operators (MTOs) because generated revenue isn’t sufficient to offset the cost of complying with AML/CFT and other requirements.

MTOs are crucial to the international remittances industry and provide relevant services for many migrants and their families. They also help extend reach and access to remittances and other financial services since they operate in many remote locations where banks aren’t present.