Tim Adams on Bloomberg: 'A Lot to Be Worried About' on Global Growth
October 10, 2014 —
IIF President and CEO Tim Adams talks about the global economy, markets and financial regulation with Peter Cook on Bloomberg Television’s “Surveillance”.
Emerging Market GDP Growth Estimate Above 4 Percent in Q3
October 7, 2014 — Emerging market growth is tracking higher according to the September update of the IIF’s EM Coincident Indicator showing Q3 growth at 4.1 percent, up 0.2 percent from the August estimate.
“Our EMCI September update indicates that growth in emerging markets gradually accelerated in Q3, but weaker business sentiment and deteriorating financial market performance, including falling commodity prices, suggest some caution going forward,” said Charles Collyns, chief economist of the IIF.
Among the macroeconomic and financial variables that feed into the EMCI, merchandise trade and industrial production continued a modest uptrend. By contrast, business sentiment has weakened and financial variables, notably commodity prices, softened in September, weighing on emerging market growth.
Lubomir Mitov on Bloomberg: Sanctions Have Hit Russia Hard
October 2, 2014 — IIF Chief Economist Lubomir Mitov discusses the effect of western sanctions on Russia, what President Putin can do to revive the economy and why he thinks the sanctions are having more of an impact than first thought with Bloomberg’s Manus Cranny on “Countdown.”
Capital Flows to Remain Volatile
October 2, 2014 — Capital flows to emerging markets have continued to be very choppy this year according to the latest Capital Flows Report by the Institute of International Finance. The period from March to July was marked by a surge in portfolio equity and debt inflows, particularly to Asia, followed by a sharp slowdown since August.
The IIF has raised its 2014 forecast for total private capital inflows to emerging markets by $130 billion to $1,162 billion. This is a decline from $1,241 billion in 2013, primarily due to the collapse of flows to Russia.
Andrés Portilla Named Managing Director, Regulatory Affairs
October 1, 2014 — The Institute of International Finance today announced that Andrés Portilla has been promoted to Managing Director for Regulatory Affairs.
“Regulatory issues remain our top priority and I am pleased Andres will lead our advocacy efforts on behalf of our members,” said Tim Adams, president and CEO of the IIF. “Andrés’ experience and knowledge of these complex issues will allow us to work with our members and the regulatory community toward our common goal of a safe and sound financial system that promotes economic growth and job creation.”
IIF: The Illusion of Liquidity
September 30, 2014 — Normalization of U.S. monetary policy will test the notion that the market calm and low volatility environment that has reigned over financial markets in recent years is but an “illusion of liquidity,” created by and dependent on near-zero interest rates and will be reversed when rates rise, according to the latest IIF Capital Markets Monitor.
Portfolio Flows to Emerging Markets Edge Up In September
September 29, 2014 — Portfolio inflows to emerging markets climbed to a moderate level in September after a sharp slowdown in August, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance. Emerging markets received $18 billion in September, up from the $12 billion in August (revised up by $3 billion). Portfolio equity inflows slowed marginally to $8 billion, while portfolio debt inflows picked up to $10 billion.
Lubomir Mitov on CCTV America: Ukraine's economy is on brink of collapse
In an interview with CCTV America, IIF Chief Economist for Emerging Europe Lubomir Mitov discusses Ukraine’s economic outlook.
IIF Paper: “Too Big To Fail” Coming to an End
September 18, 2014 — The Institute of International Finance today released a paper arguing that, in the relatively near future, regulators and the industry will be able to say without reservation that no financial institution is “too big to fail.”
“The global financial system is safer and sounder than it was six years ago,” said Tim Adams, president and CEO of the IIF. “In 2008, there was no plan for what to do if a big bank failed. Today, we have agreed international principles. Legislatures have enacted these principles into law. Detailed roadmaps have been prepared to apply the new laws on a bank by bank basis, and lines of communication have been established among authorities to ensure a global bank can be resolved cross-border.”
Tim Adams OpEd: ‘Too big to fail’ dilemma is solved
September 18, 2014 — In an opinion piece featured in the Australian Financial Review ahead of the G20 Financial Ministers and Central Bank Governors meeting in Cairns, IIF President and CEO Tim Adams addresses how steps have been taken to put in place resolution regimes to ensure that a financial institution can fail without disruption to the financial system. Adams highlights how Financial Stability Board’s Key Attributed of Effective Resolution Regimes for Financial Institutions set out a global model that most jurisdictions have turned into law. “We now have the tools to handle a failed bank—without cost to taxpayers…” Adams wrote.
IIF Concerned that Global Growth Engines are Sputtering
September 15, 2014 — The Institute of International Finance released its latest assessment of the global economy, raising concerns that growth momentum has been faltering. The IIF noted that global growth picked up only marginally in the second quarter as stronger U.S. and Chinese growth were largely offset by disappointments elsewhere. Slower momentum in mature economies outside the U.S., notably the Euro Area, is weighing on global trade and exacerbating home-made problems in many emerging markets.
Emerging Market Growth Picks Up Pace in Q3
September 9, 2014 — Emerging market GDP growth is on track to grow at a 3.9 percent pace in 2014Q3, slightly higher than the 3.5 percent seen in 2014H1 according to the August reading of the Institute of International Finance’s new Emerging Market Coincident Indicator (EMCI).
“Growth in emerging markets is gradually recovering from a dismal first half performance,” said Charles Collyns, chief economist at the IIF. “However, the pace of growth is still modest, in part reflecting drag from some mature economies, notably the Euro Area, but also home-grown difficulties including political uncertainty in a number of emerging markets.”
New IIF U.S. Market Risk Index Sends Warning Signal
September 4, 2014 — Investors should be more cautious as market uncertainty rises in anticipation of the Fed’s first rate hike next year, according to a new index developed by the Institute of International Finance.
“In light of the pending Fed exit from quantitative easing and the associated potential market risks we are offering a simple, intuitive gauge that we think is a helpful alternative to the VIX,” said Hung Tran, executive managing director at the IIF. “Currently, the IIF U.S. Market Risk Index reflects a degree of stress building up: equities continue to gain over bonds, while the dollar index has had a decisive move higher since early July. Hence while volatility-based risk measures still show a green light, our new index suggests more caution may be warranted.”
Portfolio Inflows to Emerging Markets Slow Sharply in August
August 27, 2014 — Following several months of buoyant inflows, portfolio investments in emerging markets slowed sharply in August, according to the latest Institute of International Finance EM Portfolio Flows Tracker. Emerging markets are estimated to have received a mere $9 billion in August, after an average of $38 billion per month in May-July. Portfolio debt inflows were particularly affected, grinding to a halt in August. New regional portfolio flow estimates for the month of August point to a reversal in portfolio flows to EM Europe (-$7.3 bn) and Africa (-$1.5 bn), and a slowdown in flows to Asia ($9.7 bn) and Latin America ($8.3 bn).
IIF Names Jean-Charles Sambor Director of Asia/Pacific
August 25, 2014 — The Institute of International Finance today announced that Jean-Charles (“JC”) Sambor will become IIF’s Director for the Asia/Pacific region. Sambor will be based in Singapore where he will head IIF’s new regional office. “Asia is a crucial part of the global economy and an important region for the IIF,” said Tim Adams, president and CEO of the IIF. “JC’s experience and knowledge will help guide our coverage of the region and his presence in Singapore will allow us to better engage with our members.”
IIF President and CEO Tim Adams Discusses the Future of U.S. Monetary Policy on CNBC Asia
August 22, 2014 — IIF President and CEO Tim Adams talks with CNBC Asia’s The Rundown about Fed monetary policy and the state of the U.S. economy from the Federal Reserve’s Jackson Hole Symposium.
Emerging Market Bank Lending Conditions Ease for First Time Since Early 2013
July 30, 2014 — Bank lending conditions in emerging economies eased in 2014Q2, according to the latest Emerging Markets Bank Lending Conditions Survey from the Institute of International Finance.
“Overall lending conditions in emerging markets eased for the first time since early 2013,” said Charles Collyns, chief economist for the IIF. “This primarily reflects better bank funding conditions, helped by increased risk appetite in financial markets, consistent with our recent portfolio flows tracker.”
IIF Estimates Portfolio Inflows to Emerging Markets Surge to Two Year High in July
July 28, 2014 — The Institute of International Finance today released new estimates for portfolio flows to emerging markets for July 2014 that saw inflows accelerate further in July, reaching a new two year high. According to the IIF’s Portfolio Flows Tracker, emerging markets received $44 billion in portfolio inflows from global investors in July, compared to $37 billion in June and $43 billion in May. This compares to average monthly inflows of $24 billion from 2010-2013.
Financial Industry Associations Urge TTIP Negotiators to Include Financial Services Regulatory Coordination in US-EU Trade Agreement
July 14, 2014 — The Financial Services Forum (FSF), the Financial Services Roundtable (FSR), the Institute of International Finance (IIF) and the Securities Industry and Financial Markets Association (SIFMA) issued the following statement on the next round of negotiations of the Transatlantic Trade and Investment Partnership (TTIP) currently underway in Brussels:
“As the next round of trade negotiations moves forward, the financial services industry reiterates its position that it is imperative to include financial services regulatory coordination as a key component of TTIP. With a global economy and intertwined financial markets, the financial sector cannot continue to work under misaligned, uncoordinated regulatory regimes. A framework for coordination of financial services regulation between the US and EU would reduce conflict and complexity, and improve the efficiency of regulations across borders to the benefit of market participants, their customers and regulators. We urge negotiators to capitalize on this TTIP meeting in Brussels to promote high-quality regulatory standards that promote consistency, coordination, and resilience in our transatlantic markets.”
IIF on Global Economy: No Time to Relax
July 10, 2014 — The Institute of International Finance today revised down its forecast for global economic growth to 2.6 percent for 2014, but predicts a pick-up in economic activity in the second half of the year, rising to 3.3 percent in 2015.
“Global growth for the first half of 2014 has clearly disappointed, with growth outcomes uneven and many EMs stuck in the doldrums,” said Charles Collyns, chief economist for the IIF. “It’s perhaps surprising that financial markets are buoyant and risk appetite is strong, but we believe that reflects reassurances of policy support in the core countries rather than rising confidence in the fundamental drivers of growth. Looking forward, we expect to see acceleration in growth for the second half of 2014, but we remain concerned that the global economy could continue to underperform.”
IIF Identifies Top 10 Impediments to Long-Term Infrastructure Financing and Investment
July 1, 2014 — The Institute of International Finance today released a top 10 list of impediments to long-term infrastructure financing and investment, accompanied by potential solutions. The list was developed by the IIF’s Council for Asset and Investment Management, representing investors with nearly $20 trillion in assets under management.
“The G20 has made the promotion of infrastructure investment one of its top priorities for 2014, and institutional investors have been strong supporters of this effort,” said Hung Tran, executive managing director at the IIF. “Identifying these impediments and providing practical suggestions for solutions will aid policymakers in developing policy frameworks that promote infrastructure investment.”
IIF Sees Portfolio Inflows to Emerging Markets Continuing Rapid Pace
June 30, 2014 — The Institute of International Finance today released new estimates for portfolio flows to emerging markets for June 2014 that saw inflows continue at a rapid pace, with portfolio bond flows rising to the highest levels since April 2013.
“Investors’ risk appetite remains buoyant and has supported flows into emerging markets over the last several months,” said Charles Collyns, chief economist at the IIF. “For now, markets seem unfazed about Fed exit, but sentiment could become less favorable if there is a growing sense that the Fed could have to tighten more quickly than is currently priced in.”
IIF Mint Op-Ed: India and China - Rising tiger, maturing dragon
June 26, 2014 — In an op-ed in Mint, IIF Chief Economist for Asia/Pacific Dr. Bejoy Das Gupta discusses India’s prospects relative to China given high expectations for Prime Minister Narendra Modi’s government to move forward on economic reforms to lift growth and lower inflation.
Meeting of the Paris Club with Representatives of Non Paris Club Bilateral Creditors and Representatives of the Private Sector
June 25, 2014 — For the 14th consecutive year, the Paris Club and the Institute of International Finance jointly organized a meeting between Paris Club creditors, Paris Club ad hoc participants and private creditors, along with representatives from the International Monetary Fund and the World Bank.
Sovereign and private participants stressed the paramount importance of dialogue between sovereign debtors and their creditors and coordination among creditors as the cornerstone of an efficient system for sovereign debt crisis prevention and resolution.
IIF Lowers 2014 Forecast for Capital Flows to Emerging Markets Due to Ukraine-Russia Crisis
May 29, 2014 — The IIF today lowered its forecast for private capital flows to emerging markets in 2014 by $47 billion to $1,032 billion relative to its January report, largely due to weaker inflows in 2014H1 as the Ukraine crisis is weighing heavily on flows to Russia.
“The environment for capital flows to emerging markets has become very supportive as the global economy gains momentum, risk aversion has come down to very low levels, and U.S. long-term interest rates have eased,” said Charles Collyns, chief economist at the IIF. “Portfolio flows have surged in recent months according to our Portfolio Flows Tracker, although the overall level of flows has taken a hit from the fallout of the Ukraine-Russia crisis.”
IIF Announces First Class of New Future Leaders Group
May 28, 2014 — The IIF today announced the first class of the Institute’s new Future Leaders Group. “Beyond the impact of regulatory changes and technological innovation, the future of our industry will be determined, in large part, by those who lead it,” said Tim Adams, president and CEO of the IIF. “Our Future Leaders program is meant to bring some of the brightest emerging talent in the industry together with current leaders to discuss pressing issues and to learn from one another.”
The Future Leaders program was formed by the IIF’s Board of Directors to recognize young leaders within the financial industry and to foster ties between rising stars from different regions and backgrounds.
Commentary: The Prospects for Egypt: El Sisi’s Choice
May 27, 2014 — George T. Abed, Senior Counselor and Director for Africa and the Middle East, discusses the economic and political challenges facing incoming Egyptian President Abdul Fattah El Sisi.
IIF Mint Op-Ed: Betting on Narendra Modi
May 13, 2014 — In an op-ed in Mint, IIF Chief Economist for Asia/Pacific Dr. Bejoy Das Gupta discusses the Bharatiya Janata Party’s priorities for economic development and improved governance and market expectations for prime ministerial candidate Narendra Modi.
IIF Sees Favorable Prospects for GCC Countries
May 5, 2014 — Macroeconomic prospects remain favorable for the Gulf Cooperation Council (GCC) countries the Institute of International Finance said in its latest forecast for the region. The IIF estimates the GCC will grow at 4.2 percent in 2014.
Growth moderated from 5.5 percent in 2012 to 4.2 percent in 2013, largely due to a slower rise in crude oil production. Non-hydrocarbon real GDP growth, a more representative measure of economic activity, remained robust at 5.4 percent in 2013, driven by higher public spending and stronger private sector activity.
Overall growth is projected to remain around 4 percent this year due to continued restrained oil production to accommodate increased oil supply from the United States and Iraq, and tepid global oil demand.
IIF Welcomes MetLife’s Steven A. Kandarian to Board of Directors
May 2, 2014 — The Institute of International Finance today announced that Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. has joined the IIF’s Board of Directors. “I am delighted to welcome Steve to our Board,” said Douglas Flint, Chairman of the IIF Board of Directors and Group Chairman of HSBC Holdings plc. “The IIF’s Board reflects the diverse nature of our membership and Steve’s presence will ensure insurance-related issues continue to be a top priority of the IIF.”
Challenges Ahead for Monetary Policymakers
May 1, 2014 — Monetary policymakers face difficult decisions ahead when comparing current trends in credit growth with asset valuation, according to a new research note by the Institute of International Finance. In its May edition of the Capital Markets Monitor, the IIF takes a closer look at the interaction between the “credit gap” and asset valuations. The issue of a “credit gap” was raised in the April edition of the IIF’s CMM.
Emerging Market Bank Lending Conditions Deteriorate in 2014Q1
May 1, 2014 — Bank lending conditions in emerging economies deteriorated in 2014Q1, according to the latest Emerging Markets Bank Lending Conditions Survey from the Institute of International Finance. The composite index of the IIF’s Survey declined 1.2 points to 48.2 in 2014Q1.
IIF Portfolio Flows Tracker Sees Moderation of Inflows in April
April 28, 2014 — The Institute of International Finance today released new estimates for portfolio flows to emerging markets for April 2014 that saw portfolio inflows moderate during the month after a strong rebound in March. The IIF estimates emerging markets received $25 billion in portfolio inflows from global investors, compared to $38 billion in March and $17 billion in February. The April figure reflects $15 billion going into emerging market bond markets (portfolio debt) and $10 billion into emerging market stock markets (portfolio equity).
IIF CEO Adams at Fifth IMF Fiscal Forum: Managing the Transition to Normality—Implications for Fiscal Policy
April 8, 2014 — Speaking at a high level roundtable at the Fifth IMF Fiscal Forum—an annual meeting of senior officials from ministries of finance from the major economies in the world—IIF President and CEO Tim Adams discussed the fiscal policy challenges and priorities as the global economy transitions to “normality.” Panelists discussed the near-term challenges as monetary policy normalizes and assess the scope for fiscal policy to promote higher, equitable, and more inclusive growth in a challenging global environment.
IIF Offers Constructive Comments to FSB on Non-Bank Non-Insurer GSIFIs Identification Methodology
April 7, 2014 — The Institute of International Finance today submitted its response to the Financial Stability Board’s proposed assessment methodologies for identifying non-bank non-insurer (NBNI) global systemically important financial institutions. “How to properly identify and address systemic risk remains international regulators’ primary focus,” said Tim Adams, president and CEO of IIF. “We appreciate the work the FSB has done in this space, and we reiterate our support of the FSB’s focus on activities and not entities.”
IIF’s New Capital Flows Tracker Sees Pick-up in Portfolio Flows to Emerging Markets
March 26, 2014 — The Institute of International Finance today released new estimates for portfolio flows to emerging markets for March 2014 suggesting that portfolio inflows rebounded in the last two months, following emerging market stress in early 2014. IIF estimates emerging markets received $39 billion in portfolio inflows in March, up from $25 billion in February and $5 billion in January.
US and European Financial Services Trade Associations Statement on TTIP
March 25, 2014 — The undersigned financial services trade associations, based in the US and Europe, today issued the following statement in support of a Transatlantic Trade and Investment Partnership (TTIP) that includes financial services regulatory coordination, in advance of the March 26 EU-US Summit attended by US President Barack Obama, European Council President Herman Van Rompuy and European Commission President José Manuel Barroso:
IIF CEO Adams: Ukraine shows urgency of passing IMF reform
In an Op-Ed in the The Hill, IIF President and CEO Tim Adams urges the U.S. Congress to enact the IMF funding and governance reforms agreed to by the G20 in 2010. All major countries, including important U.S. allies, have ratified these reforms except for the United States. The recent crisis in Ukraine should remind lawmakers of the importance of the IMF to U.S. interests and encourage them to enact these reforms into law.
IIF Releases New Emerging Market Portfolio Flows Tracker
March 13, 2014 — IIF today released a new indicator that tracks aggregate portfolio flows to emerging market countries on a monthly basis. Emerging market external vulnerabilities have come to the fore in recent months, underscoring the importance of monitoring international portfolio flows. However, data limitations make it difficult to track these flows in real time: Some data sources are comprehensive, but not timely—especially balance of payments data. Other data sources are timely, but not comprehensive—such as EPFR data. IIF believes this new tracker will provide a timelier and more accurate reading of portfolio flows to emerging market countries than conventional data sources, which tend to understate portfolio inflows.
IIF to Open Middle East and Africa Regional Office in Dubai, Names Wolfgang Engel Chief Representative
March 12, 2014 — IIF today announced that it will soon open an office in Dubai in recognition of the region’s growing stature in the global financial system and to better serve its members. In addition, it announced that Wolfgang Engel will become IIF’s Chief Representative for the office. Engel currently serves as Director of Global Membership for IIF in Washington.
IIF Supports FSB Commitment to Complete G20 Reform Agenda
February 25, 2014 — The Institute of International Finance today released the following statement from IIF President and CEO Tim Adams regarding Financial Stability Board Chairman Mark Carney’s letter to G20 Finance Ministers and Central Bank Governors on implementation of the G20’s global reform agenda:
“IIF reiterates its support for the core elements of the G20’s regulatory reform agenda. It welcomes the strong commitment by the FSB to completing the remaining portions of the agenda in 2014.”
“As noted in Gov. Carney’s letter to the G20, the industry has implemented many elements of the reform agenda several years ahead of the official deadline. Now, as policy makers finish the job, they need to make sure it is completed in a globally consistent way.”
IIF CEO Adams: Emerging Market Volatility must focus G20 minds
February 18, 2014 — In an Op-Ed in the Australian Financial Review, IIF President and CEO Tim Adams argues that the G20 should regard recent turbulence in emerging markets as an opportunity to regain momentum in addressing some of the issues that Australia has put on the table for the meeting: promoting stronger economic growth, creating jobs, and making the global economy more resilient to future shocks.
IIF Urges G20 to Complete Regulatory Agenda, Promote Infrastructure Investment and Encourage Policies to Strengthen Capital Flows to Emerging Markets
February 13, 2014 — The Institute of International Finance, the global association of the financial industry, today sent a letter to G20 Finance Ministers and Central Bank Governors ahead of their meeting in Sydney. The letter expressed support for this year’s agenda, including Australia’s themes of promoting stronger economic growth, creating jobs, and making the global economy more resilient to future shocks.
IIF Names Das Gupta Chief Economist for Asia
January 31, 2014 — The Institute of International Finance today announced that Dr. Bejoy Das Gupta has been promoted to Chief Economist for Asia. In that role, Das Gupta will be responsible for managing the IIF’s economic analysis for the region.
Euromoney: Dollar, as reserve currency, is a virtue, not a trap: a response to Eswar Prasad
January 28, 2014 — In response to Eswar Prasad’s new book “The Dollar Trap,” Charles Collyns, IIF Managing Director and Chief Economist and a former US Treasury official, argues that the dollar-led monetary system boosts global stability, while China’s fixed exchange-rate regime poses risks, as debate rages over the role of the dollar in the emerging world.
IIF Report on Lebanon: Improved Security Key to Growth Revival
January 24, 2014 — The Institute of International Finance (IIF) today published a new report on Lebanon. It concluded that growth slowed in 2013, and that the extent of economic rebound in 2014 and beyond hinges on an improvement in the security situation and a de-escalation of the civil war in Syria.
IIF CEO Adams in Davos: We’re looking to the future
January 22, 2014 — In an interview with CNBC Europe from the World Economic Forum in Davos, Switzerland, IIF President and CEO Tim Adams addressed how the financial sector has changed since the 2008 financial crisis and the EU’s Asset Quality Review.
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.