Global ETF News Older than One Year
Reopening from the Great Lockdown: Uneven and Uncertain Recovery
June 24, 2020--The COVID-19 pandemic pushed economies into a Great Lockdown, which helped contain the virus and save lives, but also triggered the worst recession since the Great Depression. Over 75 percent of countries are now reopening at the same time as the pandemic is intensifying in many emerging market and developing economies.
Several countries have started to recover. However, in the absence of a medical solution, the strength of the recovery is highly uncertain and the impact on sectors and countries uneven.
Source: IMF
Long-term Climate Strategies Critical to Ensuring Sustainable Recovery for Countries, Says New World Bank Report
June 24, 2020--Report identifies key economy-wide actions for long-term decarbonization
Long-term climate strategies that look ahead to 2050 can help countries unlock new economic opportunities while also ensuring a safer climate, says a World Bank report published today.
The World Bank Outlook 2050: Strategic Directions Note proposes a whole-of-economy approach to reaching decarbonization by mid-century through actions across sectors, including food systems, energy, transport, water systems and low-carbon cities.
view the World Bank Outlook 2050: Strategic Directions Note
Source: World Bank
BIS encourages central banks to continue adapting to the challenge of digital payments
June 24, 2020--Rapid reshaping of payment services requires central banks to keep evolving as they support the safety and integrity of the payment system.
Changes are generating interest in central bank digital currencies (CBDCs), which deserve consideration as additional means of payment.
Covid-19 has spurred contactless payments while highlighting shortcomings in payment systems, especially for the poor and unbanked.
Central banks, as guardians of the safety and integrity of the payment system, must keep evolving to meet the challenge of rapidly accelerating digital innovation, the Bank for International Settlements (BIS) writes in its Annual Economic Report.
Source: BIS
Basel Committee proposes amendment to capital rules for non-performing loan securitisations
June 23, 2020--Proposal sets out a prudent treatment for securitisations of non-performing loans with a risk weight floor of 100% for these exposures
Proposal addresses a gap in the regulatory framework and was being developed before Covid-19
Comments on this technical amendment welcome until 23 August
The Basel Committee on Banking Supervision published today the technical amendment Capital treatment of securitisations of non-performing loans. This proposal, which the Committee started developing before the onset of the Covid-19 pandemic, addresses a gap in the regulatory framework and sets out a prudent treatment for securitisations of non-performing loans.
Source: BIS
Basel Committee proposes amendment to capital rules for non-performing loan securitisations
June 23, 2020--Proposal sets out a prudent treatment for securitisations of non-performing loans with a risk weight floor of 100% for these exposures
Proposal addresses a gap in the regulatory framework and was being developed before Covid-19
Comments on this technical amendment welcome until 23 August.
The Basel Committee on Banking Supervision published today the technical amendment Capital treatment of securitisations of non-performing loans. This proposal, which the Committee started developing before the onset of the Covid-19 pandemic, addresses a gap in the regulatory framework and sets out a prudent treatment for securitisations of non-performing loans.
The technical amendment establishes a 100% risk weight for certain senior tranches of non-performing loan securitisations.
Source: BIS
Impact of the coronavirus pandemic on the global economy-Statistics & Facts
June 22, 2020--While there is no way to tell exactly what the economic damage from the global COVID-19 novel coronavirus pandemic will be, there is widespread agreement among economists that it will have severe negative impacts on the global economy. Early estimates predicated that, should the virus become a global pandemic, most major economies will lose at least 2.4 percent of the value their gross domestic product (GDP) over 2020, leading economists to already reduce their 2020 forecasts of global economic growth down from around 3.0 percent to 2.4 percent.
To put this number in perspective, global GDP was estimated at around 86.6 trillion U.S. dollars in 2019 – meaning that just a 0.4 percent drop in economic growth amounts to almost 3.5 trillion U.S. dollars in lost economic output. However, these predictions were made prior to COVID-19 becoming a global pandemic, and before the implementation of widespread restrictions on social contact to stop the spread of the virus.
Source: statista.com
Global Wealth 2020: The Future of Wealth Management-A CEO Agenda
June 20, 2020--The wealth management industry is over 200 years old. Yet for most of that history, providers have operated according to the same general playbook.
It took the massive digital and regulatory disruption of the past 20 years to begin shaking up industry business models, and evidence suggests that most providers have moved slowly, with many still adhering to traditional ways of private banking.
Source: bcg.com
How the Coronavirus Will Reshape World Trade
June 19, 2020--In the post-pandemic world, more economic activity will be designated vital to national security, accelerating pressures on globalization
When the global economy finally gets beyond the pandemic, expect it to be less globalized than before.
Governments, including many longtime advocates of global trade, are using the crisis to erect barriers to commerce and bring manufacturing home. Japan now pays companies to relocate factories from China. French President Emmanuel Macron pledges "full independence" in crucial medical supplies by year-end. In Washington, Republicans and Democrats alike back new "Buy American" requirements for government health spending.
Source: wsj.com
Trade credit, trade finance, and the Covid-19 Crisis
June 19, 2020--June 19, 2020--Key takeaways
As the Covid-19 pandemic hits economic activity, the vulnerabilities of longer and more geographically extended trade credit chains are coming to the fore, especially those related to international trade.
While risk mitigation is available from financial intermediaries, the bulk of the exposures associated with supply chains is borne by the participating firms themselves, through inter-firm credit.
Given the prevalence of the US dollar in trade financing, measures such as central bank swap lines that ease global dollar credit conditions may cushion the impact of the pandemic on global value chains.
Source: BIS
US dollar still dominates international funding markets
June 18, 2020--Dollar remains the pre-eminent international funding currency even as market structure shifts
To preserve the benefits of this shift, the strength of the intermediation chain must be ensured
Better data collection needed to improve assessment and stronger regulation could mitigate risks.
The US dollar remains the pre-eminent international funding currency, even amid significant shifts in market structure, according to a new report by the Committee on the Global Financial System.
US dollar funding: an international perspective finds that US dollar funding is below its peak of a decade ago relative to the size of the global economy, although the US dollar's share of international funding has returned to the dominant position it held around the turn of the century. The widespread use of the US dollar has benefited participants, but the resulting interconnectedness of the market can also create vulnerabilities.
Source: BIS
