The project aims to increase understanding of what callable capital is and how it can be better integrated into multilateral development banks' (MDBs) capital adequacy frameworks.
Maximising the developmental value of MDB callable capital: Project findings and policy options
Date
Time (GMT -05)
11:00 12:30
Image credit:World Bank Group headquarters building in Washington, D.C.
Image license:Shutterstock/christianthiel.net
ODI at the WBG/IMF Spring Meetings
This event is part of a series of discussions ODI convened in Washington, D.C. during the week of the 2024 World Bank/IMF Spring Meetings.
Description
The world’s major multilateral development banks (MDBs) collectively hold US$891 billion in callable capital – a unique type of guarantee provided by shareholder governments. The G20-mandated Independent Review of MDBs’ Capital Adequacy Frameworks recommended in July 2022 that MDBs ‘incorporate a prudent share of callable capital into their own calculation of capital adequacy’, but a number of practical and conceptual issues must be addressed before this can be achieved.
This event addresses how MDBs can best make use of callable capital to underpin greater development lending. Speakers present and discuss evidence to help guide how callable capital can be better integrated into the capital adequacy frameworks of MDBs; reduce uncertainty on the circumstances and likelihood of a capital call; and contextualise how callable capital fits into the broader framework of capacities, policies and processes at MDBs.
ODI is leading a project on MDB callable capital in collaboration with the MDB Challenge Fund. The aim of the workshop will be to highlight the project’s research findings, engage relevant stakeholders and influence policy discussions on callable capital.
The key topics discussed during the workshop include:
- The legal and financial parameters of callable capital
- Modelling the circumstances that could lead an MDB to make a capital call, as well as timings and probabilities
- The shareholder fiscal context of MDB callable capital
- How callable capital fits into the broader toolkit to help MDBs face financial stress
- Options to incorporate the value of callable capital into MDB capital adequacy frameworks
The workshop starts with a brief presentation by project team members, followed by comments from the four panellists and an extended Q&A session with the audience.
Speakers
-
Chris Humphrey
Senior Research Associate, ODI (chair/moderator and project team lead)
-
Bianca Getzel
Researcher, ODI (project team member)
-
Eamonn White
Consultant, ODI (project team member)
-
Chris McHugh
Consultant, ODI (project team member)
-
Margaret Kuhlow
Deputy Assistant Secretary for International Development Finance and Policy at the U.S. Treasury
-
Hassatou Diop N’Sele
Vice-President for Finance & CFO African Development Bank Group
-
Ivan Oliveira
Deputy Secretary for Sustainable Finance, Brazil Ministry of Finance
-
Daniela Re Fraschini
Vice President – Senior Analyst, Moody’s Ratings
