20 April 2018

European Investment Bank and IFC form emerging markets risk database consortium

26 June 2009  |  2549 views  |  0 Source: European Investment Bank

The European Investment Bank (EIB) and IFC, a member of the World Bank Group, have signed a cooperation agreement creating a Global Emerging Markets (GEMs) Risk Database Consortium to pool data and strengthen risk-management practices among multilateral development banks.

The agreement formalizes the relationship between IFC and EIB in the area of pooling loss data. It also provides a consistent framework for potential partners, including international financial institutions (IFIs) such as the European Bank for Reconstruction and Development, the African Development Bank, and the Inter-American Development Bank, which will be joining the Consortium.

EIB President Philippe Maystadt said: "In the context of promoting the development of the financial markets in emerging countries, the GEMs Risk Database initiative will enhance the cooperation and synergies among IFIs."

"This is a great knowledge-sharing opportunity for IFC ," said Lars Thunell, IFC Executive Vice President and CEO. "We are pleased to be a part of this initiative, which will help strengthen risk management practices worldwide."

Credit -risk data, such as default and recovery rates, have become a key element of the risk assessment process. The initiative will expand the universe for such information and strengthen risk management practices among organizations. It will also provide a common platform for enhancements and knowledge sharing.

In collaborating to create this data consortium, IFC and EIB worked to standardize the data collection processes. They structured the data in a way that keeps counterparts' identities anonymous and preserves data confidentiality. The risk database and common methodology adopted by EIB and IFC have been reviewed independently by Standard & Poor's and will now be made available to other multilateral development banks.

The consortium has been jointly spearheaded by Alain Godard, EIB Director for Financial Risk Management and Lakshmi Shyam-Sunder, IFC Director for Corporate Risk Management who described the initiative as especially fulfilling because it goes beyond the needs of individual institutions and creates something of wider benefit.

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
https://www.capgemini.comVisit http://wup.digital

Top topics

Most viewed Most shared
Competing in an increasingly competitive spaceCompeting in an increasingly competitive s...
10996 views comments | 1 tweets | 2 linkedin
Revolut launches spare change savings toolRevolut launches spare change savings tool
9472 views comments | 14 tweets | 19 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
8376 views comments | 17 tweets | 30 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
8245 views comments | 16 tweets | 22 linkedin

Featured job

Find your next job