Financial Innovation and Multilateral Development Banks

Anthony Bartzokas (UNU-MERIT)
This Policy Brief was first published in https://t20ind.org


The ongoing policy debate on the global investment gap for sustainability is focusing on the mobilisation of available capital for the scaling up of investment. This Policy Brief considers to what extent international financial institutions can play a catalytic role in the effectiveness of this exercise with innovative products and proactive capacity building in the Global South. It is proposed that a financial innovation transfer channel from multilateral development banks (MDBs) to financial institutions in developing countries (estimated balance sheet US$ 600 billion and US$ 9,600 billion, respectively) be opened up in five areas-i.e., loan syndications, lending facilities, private equity participation, infrastructure project de- risking, and balance sheet optimisation. The climate change agenda is an opportunity for a streamlined approach on the diffusion of financial innovation. Expected benefits are procedures-related (efficiency and access to underserved markets) and product-related (for example, with the aggregation of financial transactions supporting climate finance adaptation).


Anthony Bartzokas (UNU-MERIT)

Latest Policy Briefs

Register for Updates

Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!

1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to contact@global-solutions-initiative.org or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.