October 10, 2015

Members of the Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring meet once a year to review the progress being made on the implementation of the Principles within the framework of the international financial architecture.

September 15, 2015

The Institute of International Finance today announced that MetLife Chairman, President and CEO Steven A. Kandarian has been named Chair of its Insurance Regulatory Committee. Kandarian succeeds Martin Senn, CEO of Zurich Insurance, in the role.

“Since joining our Board last year, Steve has provided valuable leadership and insight to the IIF. I’m pleased he has agreed to take on an additional role as Chair of this committee, leading our efforts on a number of insurance-related regulatory issues moving forward,” said Tim Adams, president and CEO of the IIF. 

August 27, 2015

Volatile market conditions have taken a toll on capital flows to emerging markets, with net non-resident portfolio flows in August falling into negative territory for the first time in 2015, according to the Institute of International Finance’s latest EM Portfolio Flows Tracker. Outflows were estimated at $4.5 billion in August compared to inflows of $6.7 billion in July.

“Portfolio flows to emerging markets have retreated sharply in the last few weeks,” said Charles Collyns, chief economist at the IIF. “Emerging market investors have been spooked by rising uncertainty about China, and stress has been exacerbated by a combination of fundamental concerns about EM economic prospects and volatility in global financial markets.”

Emerging market equity flows fell to their lowest level since the 2013 taper tantrum at -$8.7 billion, while debt flows were estimated to have softened but remained positive at $4.2 billion in August. 

August 6, 2015

Emerging market bank lending conditions continued to tighten in 2015Q2, albeit at a more moderate pace, according to the latest quarterly Emerging Markets Bank Lending Survey by the Institute of International Finance.

“Credit standards continued to be tightened as funding conditions worsened and non-performing loans increased amidst a challenging growth environment in many emerging markets,” said Felix Huefner, chief economist, global macroeconomics at the IIF. “This worsening of supply conditions has largely offset more positive news of higher loan demand, notably in Emerging Europe.”

Lending conditions have tightened in each of the last four quarters. In 2015Q2, the composite index for EM bank lending conditions ticked up 0.9 points to 49.0 but stayed below the threshold of 50, implying that bank lending conditions continued to tighten but at a somewhat more moderate pace. 

August 4, 2015

Emerging markets are suffering from what appears to be a “perfect storm” in recent weeks, with equities, bonds and currencies seeing declines, according to a new research note by the Institute of International Finance.

“Emerging market countries navigating harsh global economic and financial conditions must pursue strong economic policies to reduce vulnerabilities,” said Hung Tran, executive managing director of the IIF. “These countries will need to articulate a reform agenda designed to improve potential future growth.” 

Emerging Markets in Perfect Storm IIF

August 4, 2015

On July 1, 2015, a task force led by the World Bank and FIRST Initiative released a consultation on the Design, Implementation and Evaluation of Public Credit Guarantee Schemes for Small and Medium Enterprises (SMEs). The IIF is a member of the task force.

Many banks use such schemes and have reported impediments to their usage, as detailed in an IIF survey. The Task Force has produced a set of nonbinding Principles to guide the development of schemes that provide maximum benefit to alleviating the SME financing gap and the least amount of market distortion. IIF members are invited to participate in an ongoing public consultation, and comments should be submitted by August 31, 2015: https://consultations.worldbank.org/consultation/developing-principles-public-credit-guarantee-schemes-cgss-smes.

Other members of the Task Force include: the Arab Monetary Fund, the Asian Credit Supplementation Institution Confederation, the Association of African Development Finance Institutions, the European Association of Mutual Guarantee Societies, and the Ibero-American Guarantee Network.

July 29, 2015

Emerging market portfolio inflows weakened to $6.7 billion in July from $11.3 billion in June, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

“EM portfolio flows have been subdued in recent weeks,” said Robin Koepke, an economist at the IIF and lead author of the report. “Investors seem to be in a ‘wait-and-see’ mode amidst concerns about Chinese equity market volatility and continued uncertainty regarding Fed liftoff and Greece.”

The IIF noted that EM equity inflows slowed to a year-to-date low of $1.6 billion in July, while debt flows remained subdued at $5.1 billion. EM Asia saw its weakest inflows of the year as concerns about China held back flows to other markets in the region (Chart 1).

Due to data limitations, portfolio flows to China are not included in the estimation of the Tracker, but a new proxy for foreign purchases of Chinese stocks published by the PBOC indicates significant retrenchment in June (Chart 2).


The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.    

July 28, 2015

Flows to emerging market funds have been particularly volatile amid concerns about Chinese equity markets, falling commodity prices and shifting perceptions on the timing of the first Fed rate hike, according to the IIF’s latest Portfolio Allocation Trends report. Portfolio Allocation Trends report was formerly known as the Trends in Investment Fund Portfolio Allocation.

“The share of emerging market assets in fund investors' portfolios has dropped to a post-crisis low," said Sonja Gibbs, director of capital markets at the IIF.  “This month's volatility in Chinese equity markets has actually masked the broader EM picture. Flows to Chinese onshore equity funds surged in early July, reflecting the impact of recent stimulus measures, which encouraged Chinese fund managers to use their own capital to buy shares. Stripping out China, EM mutual funds and ETFs have actually seen net outflows of $2.3 billion month to date." 

July 8, 2015

Emerging market GDP growth picked up in Q2 after its multi-year lows in the previous two quarters, according to the latest update of the IIF’s EM Coincident Indicator.  The EMCI rose to 2.7 percent in June, up by 0.5pp relative to May and 0.7pp relative to March. This increased momentum is broad-based across regions, but most notably in EMEA and LATAM. 

“It is particularly encouraging that EM trade data continued to show signs of a turnaround this quarter, following a prolonged period of weakness since last autumn,” said Kristina Morkunaite, lead author of the report. “This turnaround suggests that stronger growth in advanced economies is now exerting more pull, raising hopes that EM weakness has run its course and activity will continue to gain momentum in 2015H2.

June 25, 2015

Portfolio flows to emerging markets fell in June, reaching a year to date low of $4.2 billion, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

“Portfolio flows to emerging markets have weakened further,” said Charles Collyns, chief economist at the IIF. “Emerging market investors seem to have become increasingly cautious as the Fed’s first interest rate hike since 2006 is approaching. Fears of Greece leaving the Euro Area have not helped either.”

The IIF reported that emerging market debt flows continued a five month streak of subdued momentum, while equity markets experienced the weakest monthly inflow of 2015. On a regional basis, inflows to EM Asia slowed in June while flows to Latin America were more resilient. In Emerging Europe, outflows continued for the fifth consecutive month.

Media Contacts

Dylan Riddle

Tel: +1 202.857.3626

Email: driddle@iif.com