Finance sector development Archives - Page 4 of 14

Do persistent current account imbalances hamper regional and global growth?

John Beirne / April 9, 2021

Current account surpluses have persisted in a number of Asian and European economies throughout the global financial crisis and thereafter. Along with Germany, Japan has a decades-long history of recording current account surpluses. Due to rapid improvements in the competitiveness of its manufacturing sector, Japan has almost continuously recorded trade surpluses since the mid-1960s, and as a result, record current account surpluses (Shirakawa 2011).

Revisiting green bond market development in Viet Nam

Tapan Sarker / March 26, 2021

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

Joshua Aizenman / March 4, 2021

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

Huang Yiping / February 26, 2021

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

Hans Genberg / February 1, 2021

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

John Beirne / November 27, 2020

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

John Beirne / October 28, 2020

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

Pitchaya Sirivunnabood / September 11, 2020

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

Dina Azhgaliyeva / July 10, 2020

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

Aziz Durrani / June 3, 2020

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.