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Co-organised by the G20 Russian Presidency and the OECD, this roundtable focused on policy measures to address constraints in long-term investment. It was organised back-to-back with the 2013 OECD Forum and the OECD-Euromoney Infrastructure Summit.
Draft high-level principles intended to help governments facilitate and promote long-term investment by institutional investors were made available for comment via publication consultation between 2-24 May 2013.
22-May-2013
English, PDF, 587kb
The paper argues that interest rates are at extremely low levels to support banks, and the search for yield has pushed the liquidity driven speculative bubble from real estate, derivatives and structured products markets into the corporate debt market. Equities have rallied strongly too. This asset cycle is certainly helping banks reduce hidden losses on illiquid securities and could also help reduce the cost of equity.
Adrian Blundell-Wignall is the Special Advisor to the Secretary-General on Financial Markets and Deputy Director in the Directorate for Financial and Enterprise Affairs at the OECD.
The Czech Republic-OECD Conference on Financial Education: "Promoting financial wellbeing through financial education", took place on 16-17 May in Prague, Czech Republic.
10-May-2013
English, PDF, 722kb
Lending by banks is failing to support economic recovery, despite unprecedented low interest rates and policies to compress the term premium. This study explores the business activities of banks, with a special focus on their lending behaviour and its responsiveness to unconventional monetary policy.
There are good reasons why the public has lost confidence in banking and finance. Two issues in particular must be addressed before it can be restored– moral hazard and conflict of interest. Reforms should ensure that banks and bankers–not taxpayers–pay the price of failure and are held fully accountable for their actions.
Within the framework of the its project on institutional investors and long-term investment, the OECD is working with the G20 on long-term financing, focusing on infrastructure investment, to foster long term growth.
Sound debt management allows African policymakers to develop local-currency bond markets, integrate into a worldwide network of debt managers, and to enhance awareness of advances in Africa among policymakers, investors and others outside the continent.
Governments are major issuers of debt instruments in the global financial market. This volume provides quantitative information on central government debt instruments for the 34 OECD countries.
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