Yale School of Management

Posts by International

A New Index of Bank Resolution Reforms

September 3, 2020
A New Index of Bank Resolution Reforms
This guest blog post comes to us from Matteo Aquilina, Krishan Shah, Costas Stephanou and Jonathan Ward. At the end of June, the Financial Stability Board (FSB) published a consultation report on its evaluation of the too-big-to-fail (TBTF) reforms for systemically important banks. The TBTF reforms  were endorsed by the G20 in the aftermath of the 2008 financial crisis and have been implemented in FSB jurisdictions over the past decade. The report examines the extent to which the reforms are reducing the systemic and moral hazard risks associated with global and domestic systemically important banks (G-SIBs and D-SIBs), as well as their broader effects on the financial system. Continue reading “A New Index of Bank Resolution Reforms”

The G20’s impasse on Special Drawing Rights (SDRs)

August 11, 2020
Policymakers have spent four months calling for the G20 to support a new allocation or a reallocation of special drawing rights (SDRs) at the IMF. An SDR allocation would help bolster the reserves of the world’s countries. Nevertheless, the G20’s latest July communique, much like the last one in mid-April 2020, barely mentioned the SDR. The only reference to an SDR allocation or reallocation in the communique was an admission that the G20 had indeed discussed it, but could not find a consensus on the issue. The U.S. blocked an allocation and is also blocking efforts to allow rich countries to donate their SDRs to those in need. Continue reading “The G20’s impasse on Special Drawing Rights (SDRs)”

Update on the progress of the World Bank’s COVID-19 response efforts

July 27, 2020
In March the World Bank Group (WBG) announced $14 billion in fast-track financing to help countries respond to the COVID-19 pandemic. Since then, the WBG has provided approximately $8.3 billion in both fast-track and other financing for 339 projects across 117 countries (see here). The following lists the elements comprising the package. $8 billion from the International Finance Corporation (IFC) $2.7 billion from the International Bank for Reconstruction and Development (IBRD) $1.3 billion from the International Development Association (IDA) $2 billion reprioritized from existing World Bank projects towards COVID-19 relief Continue reading “Update on the progress of the World Bank’s COVID-19 response efforts”

Who's afraid of some (not so big or bad) debt relief?

July 24, 2020
By early July 2020, top officials at the IMF and World Bank admitted that the Debt Service Suspension Initiative (DSSI), the  G20’s debt relief program faced challenges. They hoped to make some progress at the mid-July G20 meetings, but the July G20 meetings came and went without major action on the program. Considering that the DSSI was supposed to be one of the international community’s marquee responses to the most severe instance of capital flight from developing economies in recent memory, it is important for billions of people that they get the program right.  Continue reading “Who's afraid of some (not so big or bad) debt relief?”

The Limits of the G20's Debt Service Suspension Initiative

May 18, 2020
As of May 1, G20’s Debt Service Suspension Initiative (DSSI) for 76 International Development Association (IDA) countries and least developed countries (LDCs) has become operational. However, it remains unclear whether private-sector creditors will collaborate on such efforts for those countries and the question on what to do about the much larger debts of low- and middle-income countries is still open. Continue reading “The Limits of the G20's Debt Service Suspension Initiative”

EU Programs Supporting non-EU Countries

May 13, 2020
On April 22, the European Commission approved a €3 billion macro-financial assistance (MFA) program to ten neighboring countries outside the European Union for a period of one year to help them cover their immediate financing needs. Like the €20 billion Team Europe strategy announced earlier, this helps demonstrate the EU’s solidarity with other countries in tackling the COVID-19 pandemic. Continue reading “EU Programs Supporting non-EU Countries”

Multinational Organizations’ Efforts to Assist Countries through COVID-19 crisis

May 6, 2020
The International Monetary Fund (IMF), World Bank, and other multinational organizations have announced plans to make hundreds of billions of dollars available to emerging markets in response to the COVID-19 crisis. But their own experts have said these funds will probably be insufficient, and they have collectively released only a small fraction of that amount so far. Continue reading “Multinational Organizations’ Efforts to Assist Countries through COVID-19 crisis”

IFC Provides $8 Billion in Fast-Track Financing to Private Sector

April 29, 2020
The International Finance Corporation (IFC) will be providing fast-track financing of $8 billion to support companies impacted by the COVID-19 pandemic. On March 3, the World Bank Group approved $6 billion in fast-track financing through the IFC. It approved an additional $2 billion on March 17. Continue reading “IFC Provides $8 Billion in Fast-Track Financing to Private Sector”