IIF Market Monitoring Group Warns on Impact of Regulatory Reforms on Financial Markets
December 5, 2013 — The IIF’s Market Monitoring Group released the following statement today after their quarterly meeting in New York, stating that some regulatory reforms aimed at stability may reduce financial market efficiency, and rising corporate debt levels pose risks for pockets of weaker firms and fragile economies.
Tim Adams on Bloomberg: 2014's sweeping regulatory changes
December 5, 2013 — In an interview on Bloomberg Television’s “Bloomberg Surveillance,” IIF President and Chief Executive Officer Tim Adams discusses regulatory changes expected in 2014.
IIF New York Times Op-Ed: Freeing Europe’s Small Businesses
November 19, 2013 — Europe’s main economic engine — small and medium-size businesses — desperately needs attention if the Continent’s nascent recovery is to gain momentum. To provide a boost, policy makers and the private sector must resolve the systemic problems that impede the flow of information, limit access to capital, and contribute to burdensome regulations that stifle growth and employment.
IIF Sees Continued High Growth in Sub-Saharan Africa
November 11, 2013 — The IIF today released its overview and forecasts for Sub-Saharan Africa’s main economies to coincide with the Institute’s Africa Financial Summit. Growth for the seven countries the IIF monitors (South Africa, Nigeria, Kenya, Ghana, Tanzania, Zambia and Côte d’Ivoire) remains solid and is forecasted to be broadly unchanged at 4.8 percent for 2013.
IIF Sees Favorable Prospects for GCC Countries, Struggles for “Arab Spring” Countries
October 28, 2013 — The IIF today released its updated forecast for the Middle East and North Africa (MENA), noting that the divergence in economic prospects between oil exporting and oil importing countries has grown since the beginning of the Arab Spring uprisings. The sixteen countries covered by IIF’s overview are expected to register overall GDP growth of 2.9 percent in 2013, rising to 3.8 percent in 2014.
Meeting of the Paris Club with Representatives of Non Paris Club Bilateral Creditors and Representatives of the Private Sector
October 22, 2013 — The Paris Club and the Institute of International Finance jointly organized for the 13th consecutive year a meeting between Paris Club creditors, representatives of Paris Club associated members and of private creditors. IMF and World Bank representatives also attended the meeting. Official creditors and private sector representatives discussed several current global finance issues: the changing landscape of capital flows in low income countries and the potential associated challenges; the most recent restructuring activities of the Paris Club; a forward-looking vision of the group of creditors, including its pivotal role in the changing landscape of global finance; the existing framework for sovereign debt crisis prevention and resolution; and the key features of recent sovereign debt restructurings.
Compensation Reform: Embedding Global Standards
In 2009, the Financial Stability Board put forward Implementation Standards to reform compensation practices within the financial services industry. In its fourth report, IIF and Oliver Wyman surveyed the progress made by global wholesale banks and found that the FSB’s standards have been largely embedded into the business practices of the industry. Survey respondents generally believe that practices have been reformed in five main areas: improved alignment of compensation with risk-adjusted performance; tightening the governance of compensation; increasing the use of deferrals, vesting and clawback arrangements; limiting the use of guaranteed bonuses; and enhancing public disclosure. Survey respondents indicated that the implementation of the FSB standards has been substantively completed and that progress on further embedding the reforms within the business culture of the firm would continue.
IIF to Engage in Constructive Dialogue with IAIS on Plans for a Global Insurance Capital Standard
October 13, 2013 — IIF today released a statement ahead of the International Association of Insurance Supervisors’ Annual conference, after the IAIS announced they would develop a global insurance capital standard by 2016.
Meeting of the Group of Trustees of the Principles
October 12, 2013 — Statement by the Co-Chairmen on behalf of the Group of Trustees
- Mr. Agustín Guillermo Carstens, Governor, Banco de México
- Mr. Zhou Xiaochuan, Governor, People’s Bank of China
- Mr. Toshihiko Fukui, President, the Canon Institute for Global Studies and Former Governor of the Bank of Japan
- Mr. Christian Noyer, Governor, Banque de France
Tim Adams on Bloomberg: No Doubt Banks Are Safer
October 11, 2013 — In an interview on Bloomberg Television’s “Surveillance,” IIF President and Chief Executive Officer Tim Adams talks about the U.S. political impasse over increasing the debt ceiling, financial regulation and the global banking system.
Restoring Financing and Growth to Europe’s SMEs
October 11, 2013 — A report released today by the Institute of International Finance and Bain & Company identifying impediments to financing small and medium-sized businesses in Europe, detailing solutions to removing the impediments and called for the creation of national taskforces in Europe to implement these solutions. SMEs in Europe have seen major declines in financing since the onset of the financial crisis in 2008.
IIF Welcomes Three New Board Members
October 11, 2013 — The Institute of International Finance (IIF) today welcomed three new members of the Board of Directors: Dr. Yahya Alyahya, Chief Executive Officer of Gulf International Bank; Daniel Pinto, Co-CEO, Corporate & Investment Bank, JPMorgan; and Takashi Tsukamoto, Chairman, Mizuho Financial Group.
IIF Study: Emerging Market Economies Weakened, Needed Reforms Pathway to Revitalized Growth
October 7, 2013 — IIF today released a study analyzing the current state of emerging market economies and discussing steps that need to be taken to revitalize growth. The study analyzed the structural factors that are contributing to slow growth and found that the slowdown, in part, reflects underlying fundamentals. The study also noted that the weakening of merging market growth also reflects a slow pace of structural reforms.
IIF Projects a Gradual Recovery of Capital Flows to Emerging Economies in Latest Report
October 7, 2013 — Capital flows to emerging economies have seen a sharp retrenchment in recent months, but should recover gradually in coming quarters according to the latest IIF Capital Flows Report. On an annual basis, total capital inflows will be lower in both 2013 and 2014 (see Table below) than in 2012. Compared to the IIF’s June 2013 report, the annual forecasts are down by approximately $80 billion for both years.
Tim Adams on CNBC: The 'Septaper' impact on asset pricing
September 9, 2013 — In an interview with CNBC Asia’s Squawk Box, IIF President and CEO Tim Adams discusses Fed tapering and the G20 regulatory agenda.
DeSouza Joins IIF as Senior Manager, Corporate Communications
August 23, 2013 — The Institute for International Finance today announced that Andrew DeSouza will be joining September 3 as Senior Manager, Corporate Communications. “I’m pleased that Andrew will be joining the IIF team, bringing his experience both in government and the private sector to bolster the IIF’s ability to communicate effectively on behalf of our members,” said Tim Adams, President and CEO. “Andrew’s depth and breadth of knowledge on financial services, the complex issues firms face, and his relationship with key media will ensure that the Institute remains an authoritative and effective voice in policymaking around the globe.”
Culture has moved to center stage as financial services firms continue to revamp risk management functions
July 30, 2013 — Five years after the global financial crisis, leading financial services firms have continued to take major steps to remake their risk governance frameworks and have made substantial progress in implementing risk-management changes, according to “Remaking financial services: risk management five years after the crisis,” a new report by EY in conjunction with the IIF. Among the key findings, a renewed emphasis on risk culture has moved to the top of the list as a chief focus for boards and senior management. A recording of EY’s webcast discussing the report is now available.
Leading Insurers Support FSB and IAIS's Objective to Preserve Resilience of Global Financial System, Emphasize Stabilizing Role of Insurance Industry
July 18, 2013 — The IIF supports the work of policymakers to contain systemic risk and foster stability of the global financial system. As (re-)insurers provide important benefits to the economy as shock absorbers and long-term investors, any policy measures for designated systemic firms need to be targeted to their business model and ensure a level playing field. The IIF and its insurance members have acknowledged the releases by the Financial Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS) announcing a list of nine Global Systemically Important Insurers (G-SIIs) as well as a policy framework to address systemic risk in insurance.
Tim Adams in the Financial Times: Unwise to forgo a risk-sensitive capital framework
July 16, 2013 — In a letter to the editor published today in the Financial Times, IIF President and CEO Tim Adams discusses the importance of a risk-sensitive capital framework. “Sir, In your editorial “In praise of bank leverage ratios” (Editorial, July 11) you seem to imply that some regulators and the financial services industry object to implementing a leverage ratio as a backstop measure to ensure sound and robust bank capitalization. On the contrary, a 3 per cent leverage ratio is now an integral part of the Basel III framework and is being implemented, with support from the industry, in all major jurisdictions, including the EU.”
IIF Bolsters Management Team, Adding Senior U.S. Treasury, World Bank Officials
July 12, 2013 — IIF President and CEO Tim Adams today announced two additions to the senior management team. Charles Collyns will join the Institute on August 26 as Managing Director and Chief Economist. Corrie Shanahan will join the Institute on November 1 as Managing Director, Global Communications and Marketing.
Fed Exit Plans, Downshift in EM Growth to Reduce Private Capital Flows to Emerging Market Countries
IIF flagship report highlights rise in private capital outflows from emerging economies, projected to reach $1 trillion in 2013June 26, 2013 — Net capital inflows to emerging economies have seen a retrenchment in recent months and are forecast to decline this year and next. The IIF projects that net private capital inflows to emerging economies will fall by $36 billion to $1,145 billion in 2013, before declining another $33 billion in 2014. Hung Tran, IIF Executive Managing Director, noted that “investors have become increasingly concerned about the market impact of the Fed’s exit from accommodative monetary conditions, particularly against the backdrop of slower growth in key emerging economies. A further rise in global interest rates would also present challenges for EM policymakers—particularly in countries facing the aftermath of a long period of strong credit growth.”
IIF Calls For Renewed Efforts To Promote Greater International Regulatory Consistency
June 5, 2013 — The Institute of International Finance today released a report encouraging national and global policymakers to promote greater consistency between national regulations. The report reviews current consistency efforts underway and contains sixteen specific recommendations for action. The report, Promoting Greater International Regulatory Consistency, responds to mounting concern in both the financial services industry and regulatory community that the determination to achieve global cooperation and coordination is waning, with jurisdictions tempted towards exceptions and purely national approaches—despite considerable efforts since the financial crisis to agree on and implement international standards.
IIF Market Monitoring Group highlights risks of a liquidity-fueled rally: while fundamentals remain weak, parts of corporate sectors exposed
Warns of potential ripple effects as the U.S. moves closer to exit from accommodative monetary policyJune 4, 2013 — Following their recent meeting in Rome, members of the IIF’s Market Monitoring Group agreed today to release the following statement, noting: a lack of fundamental support for financial market rallies; risks associated with exit strategies and a potential rise in U.S. bond yields; a need to reconsider zero risk-weighting of domestic government bonds for members of a currency union; potential vulnerabilities exist in parts of the corporate sector; and restrictions on trading “naked” sovereign CDS might impair market efficiency.
Leaders of Asia-Pacific Financial Services Firms Meet in Seoul
May 10, 2013 — The 2013 IIF Asia CEO Summit was held in Seoul, Korea, during May 8-10, and hosted by KB Financial Group. The conference brought together more than 100 senior officials from banks and other financial institutions active in Asia, along with analysts and regional policy makers. It focused on a review of the global and regional economic and financial outlook and policy challenges, the opportunities for further development of the Asian financial system, the institutional and regulatory impediments to the development of local currency corporate bond markets, and a roundtable discussion on the impact of new global regulatory reforms on the Asia region. It was concluded that while the banking system in Asia remained well capitalized and resilient, the evolving global financial regulatory framework would pose some challenges, including for cross-border activity and infrastructure financing.
IIF Announces Two Additions To The Management Team
May 9, 2013 — Institute of International Finance President and CEO Tim Adams today announced two additions to the IIF management team. Ambassador Kristen Silverberg will join the Institute as of June 1 as General Counsel and Senior Advisor, and Tony Fratto joined the Institute on May 3 as Media Consultant.
IIF CAIM raises concerns that proposed EU Financial Transaction Tax could hurt savers and pensioners
April 23, 2013 — The IIF’s Council on Asset and Investment Management (CAIM) today released a position paper on the proposed EU Financial Transaction Tax (FTT). CAIM raised concerns that any revenue potentially generated by the proposed FTT would be considerably outweighed by the potential costs in terms of burden on end-users of financial services, potentially weaker economic growth and job losses.
Tim Adams on CNBC: The broader impact of Cyprus
April 1, 2013 — In an interview with CNBC, IIF Managing Director Tim Adams discusses the broader impact of the Cyprus crisis and the need for improvements in the central financial architecture of the Euro Area.
Hung Tran on CCTV America: Japan's economic outlook
March 7, 2013 — In an interview on CCTV America, IIF First Deputy Managing Director Hung Tran discusses Japan’s economic outlook.
Global economic recovery is too reliant on central bank liquidity
March 7, 2013 — In its March edition of the Capital Markets Monitor, published today, the IIF warns that “political and policy uncertainties have intensified” in the last month, strengthening the headwinds against the nascent global economic recovery. Central banks have committed themselves to do ‘whatever it takes’ to stabilize financial markets and economies, but political deadlock represents a risk to this stabilization. The critical problem resulting from prolonged political stalemate is that essential policy reforms could be delayed – with the consequence that wider investor confidence may be undermined.
IIF releases its Latin America Regional Overview at the annual Latin American CEO meeting
March 7, 2013 — The Institute of International Finance published today the new edition of its Latin America Regional Overview, at the conclusion of its 2013 annual meeting of Latin America Chief Executives, hosted in Santiago by Banco de Chile.
IIF holds annual meeting of Middle Eastern and North African banks’ CEOs
February 23, 2013 — This year’s annual meeting of Middle Eastern and North African bank chief executive officers – the 16th such gathering – concluded today in Doha. Organized by the IIF and hosted by the Qatar National Bank, the event was attended by around 100 top executives of the region’s banks and other financial services’ firms, as well as senior representatives of global firms active in the MENA Region. The two-day event was designed, as in previous years, to facilitate networking and the exchange of views on the challenges facing financial institutions in the region, within the context of regional political turmoil and a sluggish global economy.
Two New Board Members at the IIF
February 20, 2013 — Mr. Michael Corbat, Chief Executive officer of Citigroup, and Mr. Antony Jenkins, Chief Executive of Barclays, have joined the Board of Directors of the Institute of International Finance with immediate effect.
Tim Adams on Bloomberg, CNBC: Currency wars and the need for international coordination
February 15, 2013 —
The G20 Agenda under the Russian Chairmanship
February 15, 2013 — The IIF, in partnership with the Ministry of Finance of the Russian Federation, held a high-level conference in Moscow on February 14-15, just ahead of the first 2013 G20 meeting of Finance Ministers and Central Bank Governors. The discussions focused on the Russian G20 agenda. Proceedings were opened by Anton Siluanov, Minister of Finance of the Russian Federation, Alexey V. Ulyukaev, First Deputy Chairman, Bank of Russia, and Timothy Adams, IIF Managing Director.
IIF calls on the G20 to strengthen the global regulatory framework
February 11, 2013 — Members of the G20 need to take decisive action to raise global growth, reduce unemployment, enhance the global regulatory framework, and bolster financial stability, according to the IIF. This broad message was conveyed to the G20 (currently under the presidency of Russia), in the IIF’s latest Policy Letter, released at a press briefing in Washington, D.C. today. Tim Adams, the Managing Director of the IIF, said at the briefing: “We would like to bring to the attention of the G20 several important issues which, if not promptly addressed, would seriously hinder the global economy from exiting the financial crisis and attaining sustainable growth.”
IIF Publishes New Edition of Flagship Report, Capital Flows to Emerging Market Economies
January 22, 2013 — The IIF today publishes its authoritative report, Capital Flows to Emerging Market Economies. Private capital flows to emerging economies have revived strongly since mid-2012, thanks to a more risk-friendly attitude by investors. This turnaround was also supported by policy actions, including aggressive monetary easing in mature economies, and also strong fundamentals in emerging market economies. We estimate that overall flows dipped slightly in 2012 year-on-year, to $1,080 billion (against flows in 2011 of $1,084 billion), despite the strong pick-up in momentum in 2012H2.