Introduction section Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks: final report published
Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks: final report published
At the 3rd G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Bali on 15-16 July, the G20 welcomed the report "Boosting MDBs’ investing capacity" on the Independent Review of Multilateral Development Banks’ (MDBs’) Capital Adequacy Frameworks (CAFs).
CAFs play a crucial role in fostering the ability of the MDBs to sustain economic growth and provide affordable financing to the most vulnerable countries. In order to maximize the impact of the MDBs, even in pursuing the Sustainable Development Goals (SDGs), at the G20 meeting in Venice on 9 and 10 July 2021, during the Italian presidency, it was decided to launch an independent review of Capital Adequacy Freameworks, through the subsequent establishment of an ad-hoc panel. The panel’s activities were carried out in full independence and with the support of a Secretariat at the Italian Treasury, which offered administrative and logistical assistance. These activities led to the editing of this report whose content includes a series of recommendations which pave the way to a reform process. Among the objectives of the report there is the increase of the investment opportunities of the MDBs and a more efficient use of public resources to cope with the post-pandemic phase and future crisis scenarios.
“The Independent Review of MDB’s Capital Adequacy Frameworks was a key deliverable for the Italian G20 Presidency - Alessandro Rivera, Director General of the Italian Treasury, stated - and I was very pleased to see its report receive such a broad welcome from G20 members. These are important reforms that could lead to a step change in deploying MDBs’ resources to support vulnerable countries and tackle the daunting challenges we face “