21/05/2016 - It is seven years since the global crisis and despite easy monetary policy, financial regulatory reform, and G20 resolutions favouring structural measures, the world economy is not making a lot of progress. Adrian Blundell-Wignall gives a preview of what’s in the 2016 edition of the OECD Business and Finance Outlook.
These reports describe the main features of the financial markets of countries that have recently joined the OECD.
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Higher capital requirements, bail-in and resolution funds are shown to substantially limit potential government contingent liabilities stemming from failures in the European banking sector. Losses are being shifted from taxpayers to bank creditors and, while this is desirable, they do not disappear. Several challenges in implementing bail-in remain and further efforts are necessary to make them work effectively in practice.
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Earlier OECD research has shown that capital flow management measures that are used as macro-prudential measures, including currency-based restrictions applied to banks’ operations also with non-residents, have the intended negative impact on capital account openness as measured by covered interest parity indicators. But what is their impact as macro-prudential tools to improve resilience to financial stability risks?
This Roundtable offers a forum for regulators, policy-makers, experts, practitioners, scholars and international organisations to discuss issues relating to capital market and financial reform in Asia.
This article on public equity financing for SMEs complements earlier OECD work on market-based finance for SMEs. The development of this market segment could promote investment in SMEs and, together with securitisation and other non-bank debt financing instruments, encourage an enhanced allocation of risk and risk taking, and thus support growth.
This article addresses the potential implications of climate change for the financial management of disaster risks. It outlines the contribution of insurance to reducing the economic disruption of disaster events and policy approaches to supporting the penetration of disaster insurance coverage and the capacity of insurance markets to absorb disaster risks.
Climate change is a major political and economic challenge. This paper sketches out its relevance for the financial sector. Necessary low-carbon investments imply a significant yet manageable financing gap. Beyond capital mobilisation that has attracted most attention until now, the main challenge is ensuring a transition-consistent capital reallocation.
If we want to get serious about unlocking green investment, we need to get serious about systematically integrating climate risks into our understanding of fiduciary duty.
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OECD's Adrian Blundell-Wignall explains why clean energy projects are not attracting investors despite the availability of fund for investment. This paper was presented at a high-level breakfast event on institutional investors and the low-carbon transition hosted by the OECD Secretary-General during COP21 on 9 December 2015.