Following the change in political leadership, Uzbekistan embarked on a path of structural reforms and economic opening. Growth is expected to pick up driven by large public investments. Continued credit boom, slowing reform momentum and external shocks present key challenges to the outlook. 

Buzz from Climate Week in New York—key role of financial firms in the transition to a low-carbon economy; Carbon pricing in focus—politically challenging but progress being made; Footprint of foreign banks in China still small — less than 2% of sector assets — and likely to remain so in the medium term…key growth impediments include digital bank competition, trade/geopolitical tensions, and limited retail banking prospects

Nord Stream 2 and TurkStream will change gas transit in Europe, allowing Russian gas to reach Western Europe while bypassing Ukraine. Transit through Ukrainian pipelines could decrease as much as 80%, widening the current account deficit and increasing financing needs. Sanctions on both pipeline projects are being discussed in Congress.

USD funding markets under scrutiny—liquidity squeeze prompts Fed cash injection and IOER cut; Growing reliance on the USD in funding markets and international trade leaves other countries vulnerable to spillovers; USD-denominated debt outside the USD rises to almost $12 trillion in Q1 2019; Climate-related capital flows to emerging markets on track to exceed $80 billion in 2019—but private flows still small; Carbon pricing initiatives are on the rise, but there’s scope for much more progress  
 

The September 2019 IIF Global Regulatory Update provides updates on the Financial Stability Board along with current work streams in Regulatory Capital, Recovery and Resolution, Cyber Security, Digital Finance, Sustainable Finance, Insurance and upcoming events.