International Day of Bank 2024; December 4th.

FORUM:“Enhancing Collaboration between national development banks and multilateral banks.” International Day of Bank 2024. On December 4th, we celebrate the International Day of Bank 2024 in recognition of the significant potential of multilateral development banks and other international development banks in financing sustainable development and providing know-how; and also in recognition of the vital role of the banking systems in Member States in contributing to the improvement of the standard of living. The global economy is facing heightened risks and financial volatility, with global growth likely to have peaked. Geopolitical factors, trade disputes, financial market volatility and non-economic factors, such as climate change risk further impeding growth, stability and development and worsening poverty, inequality and vulnerabilities. It is becoming increasingly urgent to address the systemic economic and financial risks and architectural gaps that threaten the implementation of the 2030 Agenda. To achieve sustainable development in particular eradicating poverty, reducing inequality and combating climate change we need to develop a long-term perspective, with Governments, the private sector and civil society to tackle global challenges. However, a more uncertain world favours more short-term behaviour. Therefore, private businesses, many of whom already face a range of short-term incentives, hesitate to commit funds to long-term investment projects. During periods of financial insecurity, households often focus on their immediate needs. And policymakers are often guided by short-term political cycles. Hence, effort is needed at all levels to ensure that strengthened collective action can help reduce global uncertainty, while financial innovation can generate significant progress across the 2030 Agenda and the Addis Ababa Action Agenda.

ACTIONS: Given the complex and ambitious set of transformations needed to deliver on the 2030 Agenda, coherence across policy areas is critical. There is a growing understanding of how financial regulations are affecting incentives for sustainable development investment. There is less understanding of the impacts of social and environmental risks on credit quality and the stability of the financial system. Policies and regulations need to act together in order to create a sustainable financial system. The regulatory system needs to be congruent with the measures used to boost the sustainability of the private financial system, such as sustainability reporting and impact measurement. 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.

EVENT: On December 4th, a high-level meeting to mark the International Day of Bank 2024 will be held at the United Nations Headquarters in New York, Join the International Day of Banks observance!