MDBs have a critical role to play in providing affordable financing to support economic recovery and to help achieving SDGs in a post-pandemic context. MDBs’ scope to leverage shareholders’ capital contributions to provide such financing is determined by their capital adequacy frameworks (CAFs).
In July 2021, the G20 Finance Ministers and Central Bank Governors agreed to launch the Independent Review of MDBs’ Capital Adequacy Frameworks.
Key objectives of the Review are to:
- Provide credible and transparent benchmarks on how to evaluate MDB CAFs;
- Enable shareholders, MDBs and CRAs to develop a consistent understanding of MDBs capital adequacy frameworks;
- Enable shareholders to consider potential adaptations to the current frameworks in order to maximise the MDBs’ financing capacity.
The Review is conducted by a Panel, led by Frannie Léautier as Expert Chair and composed of 13 Experts, designated by the IFA WG:
- Ahmed Al-Mohsen
- Paulina Beato
- Chris Humphrey
- René Karsenti
- Ekrem Keskin
- Hans-Peter Lankes
- Nancy Lee
- Mike Muldoon
- Hiroshi Naka
- Betsy Nelson
- Arunma Oteh
- Jens Ulrich
- Jinkang Wu
The Review is expected to produce its report and recommendations by mid-2022.