The OMFIF Podcast

Absa Africa Financial Markets Index 2021

Since its launch in 2017, the Absa Africa Financial Markets Index has shone a crucial light on the opportunities for investment in region. As Africa looks to build back better after the Covid-19 crisis, the 5th edition of the index, compiled by OMFIF, is more important than ever. It is a vital part of policy-makers’ and market participants’ toolkit in this process and a benchmark for international investors looking to commit to the region.

Recent progress in building robust financial markets in the region helped many countries withstand the economic shock, but it also revealed that there is still a lot more room for improvement. Countries’ immediate need for resources to support fiscal policies during the crisis and the rapid withdrawal of international capital emphasised the importance of building local markets with sufficient depth and liquidity to withstand external shocks.

The events of the past two years also heightened awareness of climate change, and the power of capital markets can be harnessed to achieve efforts to combat it. As a result, this year’s pillars incorporate indicators that gauge how financial markets in the region are incorporating sustainability considerations.

This podcast is an extract from the live report launch, hosted on 13/10/21.

Watch the presentations of findings here.

Download the report here. 

The Italian G20 Presidency

Ignazio Visco is a member of the governing council of the European Central Bank, the general board of the European Systemic Risk Board, the board of directors of the Bank for International Settlements, the steering committee of the Financial Stability Board, the board of governors of the World Bank and the Asian Development Bank. He is also alternate governor for Italy at the International Monetary Fund and the Inter-American Development Bank and takes part in the G7, G10 and G20 finance ministers and central bank governors meetings. In this podcast, he talks about Italy’s G20 presidency.

Building on OMFIF’s status as an independent think tank for central banks, the Sustainable Policy Institute brought together policy-makers, technology experts and investors on 29-30 September 2021 to push the boundaries of the discussion on the role of monetary policy, regulation and disclosure, as well as address key practical challenges, in driving greener financial markets to achieve net zero at a two day virtual symposium.

View more from the symposium here. 

Developing sustainable business models: driving private investment into climate mitigation

As climate mitigation gets higher on the agenda, it is becoming increasingly important that financial institutions transition to sustainable business models to meet developing environmental, social and governance requirements, and achieve net zero. Pat Woo, global co-head for sustainable finance, KPMG, and Vikram Kumar, new business manager, infrastructure and natural resources, Asia Pacific, International Finance Corporation, join Emma McGarthy, head of policy analysis, sustainability, OMFIF, to discuss the key elements and frameworks required for sustainable business models. They discuss the impacts of new requirements, such as the Task Force on Climate-Related Financial Disclosures, regulatory frameworks such as taxonomies and how private investors can leverage capital for new renewable infrastructure.

CBDC implementation models and the role of the private sector

Katie-Ann Wilson, head of policy analysis, OMFIF Digital Monetary Institute, is joined by David Mackeith, principal technology adviser, Amazon Web Services, and Craig Borysowich, principal architect, Payments Canada, to discuss central bank digital currency implementation models, focusing on the division of labour between the central bank and intermediaries. They also explore challenges of a two-tier model, how the central bank can incentivise adoption and the future of cross-border CBDCs.

Part 1: Financial services and transitioning to net zero

In partnership with the British Embassy in Madrid and the Spanish Chamber of Commerce in the UK, OMFIF convened two panel discussions on sustainable finance. Speakers focused on how Spain and the UK can work more closely to deliver the COP26 private finance hub strategy, as well as a wider global perspective ahead of COP26 in November.

In this podcast, the focus is on sustainable finance best practices in both the UK and Spain. Speakers include:

• Antoni Ballabriga, Global Head of Responsible Business, Banco Bilbao Vizcaya Argentaria
• Jose Maria Roldan, Chairman, Spanish Banking Association
• James Hooton, Programme Director, Green Finance Institute
• Ángel Martínez-Aldama, President, INVERCO

They delve into the role of sustainable finance as a potential key theme of the COP26 summit, the most impactful UK and Spanish policies for mitigating climate-related financial risks, the development of the COP26 private finance hub strategy and the role of public-private partnerships in transitioning to sustainable finance.

The video recording of the meeting can be viewed here.

 

The productivity question: working from home during Covid-19

Covid-19 has pushed many of us to adapt to alternative ways of working and these practices have gained momentum throughout the world. Sammi Cho, chief administrative officer Asia Pacific Region and chief executive Hong Kong Branch, BNYMellon, and Peter Outridge, head of people and change, Hong Kong and China, KPMG China, join Ellie Groves, managing director of the OMFIF Economic and Monetary Policy Institute, to discuss productivity when working from home, unintended consequences and the economic impact of this change and the benefits and risks for companies and employees.

KPMG professionals have produced a report which delves deeper into these topics, which can be found here.

In conversation with the governor: Benjamin Diokno, governor of the Bangko Sentral ng Pilipinas

Governor Benjamin Diokno from the Bangko Sentral ng Pilipinas joins David Marsh, chairman of OMFIF, to discuss the macroeconomic landscape in the Philippines after Covid-19. The governor lays out how the Philippines is recovering economically and how the central bank is supporting this growth. He gives a comprehensive picture of the country’s current and predicted future economic position, looking at inflation expectations, employment rate and central bank reserves.

Governor Diokno references slides in this podcast. To view the slides, please visit our website here. 

Ahead of the ECB

Iain Begg, professorial research fellow at the European Institute, London School of Economics and Political Science, and Silvia Dall'Angelo, senior economist at Federated Hermes Investment Management, join Ellie Groves, OMFIF, to discuss the European Central Bank’s strategy review in the context of the September policy announcement. Key questions include: will the governing council announce changes to the policy direction of the ECB, or will it continue as is? How long can the ECB hold out before committing to the end of the pandemic emergency purchase programme, currently set for March 2022? And what are the implications for central banks moving into environmental, social and governance areas with the expansion of the Central Banks and Supervisors Network for Greening the Financial System? The speakers also discuss the interplay and role of fiscal stimulus and growth pathways for Europe.

Emerging market capital flows after Covid-19

With loose money supply and low returns in the developed world, emerging markets have become the destination of choice for investors looking for high yields. However, with much uncertainty remaining and inflation well above the Federal Reserve’s target rate, speculation of Fed tapering and market tantrums are gaining momentum. OMFIF is convening a panel to look at capital flows in emerging markets, addressing what happens when the cycle turns, the likelihood of capital flows reverting and asset and currency markets in the developing world.

Panellists:
Otaviano Canuto, Non-resident senior fellow, Brookings Institute
Steve Kamin, Senior Fellow, American Enterprise Institute
David Lubin, Managing director and head of emerging markets economics, Citi
Ratna Sahay, Deputy director, monetary and capital markets department, International Monetary Fund (IMF)

This recording is taken from a live event, recorded on 31/08/2021. Watch the video here. 

Fiscal policies to tackle climate catastrophe in Asia Pacific

The physical risks of climate change are particularly high for Asia Pacific. The region is most susceptible to natural disasters, such as hurricanes, droughts and wildfires, which will become more frequent and severe. As the most populous and fastest growing region in recent decades, Asia Pacific has unsurprisingly become the largest emitter of greenhouse gases.

Fiscal policy plays a critical role in responding to climate change. Progress can be achieved by well-designed tax policies that raise the price of carbon, together with non-tax instruments such as emission trading systems or regulations. Climate adaption and mitigation requires an increase in government spending, accommodated under the fiscal framework of a country. Further, fiscal policy can facilitate the transition to a greener, low-carbon economy by investing in climate-smart infrastructure such as renewable power generation and supporting research and development in climate-smart technologies. 

Register here for the OMFIF-SPI symposium, 'Revolutionising finance for net zero'. 

Panellists:
Masahiro Nozaki, Deputy Division Chief, IMF Asia-Pacific Department
Ian Parry, Principal Environmental Fiscal Policy Expert, IMF
Satoru Yamadera, Advisor, Economic Research and Regional Cooperation Department, ADB
John Nasir, Head of Economics, APAC, IFC

This podcast is taken from a recording of a live event. Recorded on 18/08/21. 

Watch the event.