FORUM: ''Celebrate Banks '' International Day of Banks 2021.
The United Nations General Assembly decided to celebrate banks every 4 December to highlight the contribution of Banks to achieving sustainable development goals.
Well-run national development banks can help countries develop financing options for Sustainable Development Goal-related investments. Such banks should be aligned with the Goals in a holistic way and be considered in integrated national financing frameworks. Collaboration between national development banks and multilateral banks, through co-financing or on-lending arrangements, can enhance Goal-related finance through the complementarity of international resources and local market knowledge.A major achievement of 2015 was the adoption of the Addis Ababa Action Agenda, a new global framework for financing sustainable development, which aligns all financing flows and policies with economic, social and environmental priorities. The Addis Agenda builds on the 2002 Monterrey Consensus and 2008 Doha Declaration and provides a strong foundation to support the implementation of the 2030 Agenda for Sustainable Development. It includes agreements and policy recommendations in seven main areas: (i) domestic public resources; (ii) domestic and international private business and finance; (iii) international development cooperation; (iv) international trade as an engine for development; (v) debt and debt sustainability; (vi) addressing systemic issues; and (vii) science, technology, innovation and capacity-building. The concluding section deals with data, monitoring and follow-up. The Addis Agenda also establishes a dedicated and strengthened follow-up and review process for the financing for development outcomes, as well as all the means of implementation of the 2030 Agenda for Sustainable Development.
The Financing for Sustainable Development Office supports the financing for development follow-up and review process, while working with Member States, major institutional stakeholders, other relevant organizations, civil society and the business sector. In addition, the office closely follows economic and financial policy developments in other international fora to support policy coherence at the global level.
Reform of the global financial architecture.
- The crisis affecting the multilateral trading system is also an opportunity to revamp it and make it fit for sustainable development;
- Challenges in sovereign debt restructuring have sensitized the international community to gaps in the existing Debt architecture;
- Increasing vulnerabilities have underscored the importance of strengthening the global financial safety net;
- The digitization of the economy has fuelled the debate about the design of the international tax system;
- Growing market concentration has underscored the need to better monitor this trend and manage its socioeconomic implications.
I Introduction The financial crises of the past few years exposed weaknesses in the international financial system. In response, the international community is strengthening the "architecture of the international financial system" to reduce the risk of crises.
II Detecting and Monitoring External Vulnerability Detecting and Monitoring External Vulnerability. While good macroeconomic policies and adequate foreign reserves remain the key to reducing vulnerability, work has concentrated on improving IMF surveillance of policies, and on tools to help countries better assess the risks they face.
III Strengthening Financial Systems Financial regulators need to upgrade supervision of banks and other financial institutions to keep up with the modern global economy and ensure that risk management and other practices keep institutions from getting into difficulties.
IV International Standards and Codes Adherence to international standards and codes of good practices helps ensure that economies function well at the national level, which is a key prerequisite for a well-functioning international system.
V Capital Account Issues Architecture reform aims to help countries benefit from international capital flows, an important element of which is helping them open to such flows in ways that avoid risks and emphasize careful preparation.
VI Sustainable Exchange Rate Regimes Financial crises have often been marked by inconsistencies between the exchange rate regime and other economic policies. The IMF is advising countries to choose a regime that fits its needs, especially in light of the risks of pegged exchange rates for countries open to international capital flows.
VII Involving the Private Sector in Forestalling and Resolving Crises Better involvement of the private sector in crisis prevention and management can limit moral hazard, strengthen market discipline by fostering better risk assessment, and improve the prospects for both debtors and creditors.
VIII Reform of IMF Financial Facilities and Related Issues The IMF is implementing important changes to help focus its lending on crisis prevention and to ensure more effective use of IMF funds.
IX Measures to Increase Transparency Measures are being taken to make available timely, reliable data, plus information about economic policies and practices, to inform both policymakers and market participants, and to reduce the risk of crisis.
X Conclusion Although more remains to be done, the international financial system has undoubtedly benefited from the reforms over the past three years. Details of what has been done, as well as some of what remains, are set out in the attached matrix.
XI International Financial Architecture A Matrix of Goals, Progress and Future Steps
II Detecting and Monitoring External Vulnerability Detecting and Monitoring External Vulnerability. While good macroeconomic policies and adequate foreign reserves remain the key to reducing vulnerability, work has concentrated on improving IMF surveillance of policies, and on tools to help countries better assess the risks they face.
III Strengthening Financial Systems Financial regulators need to upgrade supervision of banks and other financial institutions to keep up with the modern global economy and ensure that risk management and other practices keep institutions from getting into difficulties.
IV International Standards and Codes Adherence to international standards and codes of good practices helps ensure that economies function well at the national level, which is a key prerequisite for a well-functioning international system.
V Capital Account Issues Architecture reform aims to help countries benefit from international capital flows, an important element of which is helping them open to such flows in ways that avoid risks and emphasize careful preparation.
VI Sustainable Exchange Rate Regimes Financial crises have often been marked by inconsistencies between the exchange rate regime and other economic policies. The IMF is advising countries to choose a regime that fits its needs, especially in light of the risks of pegged exchange rates for countries open to international capital flows.
VII Involving the Private Sector in Forestalling and Resolving Crises Better involvement of the private sector in crisis prevention and management can limit moral hazard, strengthen market discipline by fostering better risk assessment, and improve the prospects for both debtors and creditors.
VIII Reform of IMF Financial Facilities and Related Issues The IMF is implementing important changes to help focus its lending on crisis prevention and to ensure more effective use of IMF funds.
IX Measures to Increase Transparency Measures are being taken to make available timely, reliable data, plus information about economic policies and practices, to inform both policymakers and market participants, and to reduce the risk of crisis.
X Conclusion Although more remains to be done, the international financial system has undoubtedly benefited from the reforms over the past three years. Details of what has been done, as well as some of what remains, are set out in the attached matrix.
XI International Financial Architecture A Matrix of Goals, Progress and Future Steps
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