Bank and Finances – International World Of Business

What’s changing in gender-responsive public financial management

wpdesigns — Wed, 04 Mar 2026 17:09:32 +0000

If you’ve ever wondered how public financial management (PFM) systems integrate gender considerations so that public funds benefit everyone more equally, we’re going to share with you what we’ve learned from our latest data. Since 2020, 32 national and subnational governments have applied the Public Expenditure & Financial Accountability (PEFA) Gender Framework, creating the first global dataset on how PFM systems address gender issues. The results show progress and increased commitment but also highlight remaining gaps in achieving gender‑equality outcomes.

These 32 assessments provide a baseline for understanding where PFM systems stand today, identifying gaps, and how governments could become more gender‑responsive. PEFA Gender benchmarks good practices and informs dialogue between ministries of finance, agencies, and development partners

A global overview: Most systems are at an early stage

Across the board, most governments are still at the beginning. Only a few have embedded gender requirements into core PFM tools such as budget circulars or annual reporting frameworks. One global weakness jumps out: analyzing the gender impact of new policies. This isn’t just a PEFA finding—it lines up with broader trends. For example, OECD data shows that fewer than half of OECD countries routinely conduct gender impact assessments before rolling out new policies. The IMF’s reviews of G20 economies find advanced gender practices in only a handful of countries like Canada, Austria, France, and Japan.

Where countries are making progress

Despite the gaps, there are signs of real progress:

Budget circulars are gaining ground: Nine countries now include gender requirements in their budget call circulars. While circulars do not guarantee implementation, they set the stage for ministries to begin factoring gender into budget planning.
Sex-disaggregated performance data is becoming common: More than half of the assessed governments now collect or publish sex-disaggregated data related to service delivery. This mirrors priorities among OECD members, who see robust gender data as the first step toward effective GRB.
Expenditure tracking is emerging: Though only a few governments have tagging or classification gender-related spending, this practice is expanding. The IMF research highlights gender-budget tagging as key for medium-term planning and accountability.

Where key gaps persist

One major gap is gender impact assessment. Understanding how a policy affects men and women differently is crucial for credible GRB systems, but this was assessed as weak for most governments. Another area lagging behind is legislative scrutiny of gender impacts—almost all assessments gave low scores for both budget and audit review. Without this, reforms risk remaining technical exercises instead of driving real change in allocations and outcomes.

Three lessons emerge

Progress is happening “from the middle”: Tools such as budget circulars and performance data are advancing faster than upstream policy analysis.
Central guidance matters: When ministries of finance integrate gender requirements into core processes, other aspects of gender-responsive PFM strengthen too.
Data is outpacing decision-making: Sex-disaggregated information is increasingly available, but it’s not yet consistently used to shape policy or allocate resources.

What these findings mean for the future

With these first-generation assessments, we now have a global baseline: countries are committed to integrating gender into the budget cycle, but most are still early in building institutional frameworks.

Going forward, three areas offer potential promise:

1. Strengthening upstream gender analysis

2. Enhancing legislative engagement

3. Embedding gender-responsive budgeting into mainstream PFM reforms

PEFA Gender will continue to be a vital lens, helping governments and development partners track progress, set priorities, and build stronger gender‑responsive public financial management systems over time.

We’ll keep sharing updates as new data emerges. It’s clear—we’re on the path, but there’s plenty of work ahead!

U.S. Bank launches Business Shield™ Visa® Card for small business owners

wpdesigns — Wed, 04 Mar 2026 16:52:49 +0000

The new business credit card offers rewards and access to the Spend Management platform to monitor, track and control spending

U.S. Bank, a leading provider of payment services and solutions, today announced a new business credit card designed to help small business owners navigate fluctuations in finances and resources: the .

This new business credit card offers a for 18 billing cycles when applying at and 12 billing cycles when applying in – all with . Plus, cardholders can enjoy a suite of benefits to help navigate the foreseen – and the unforeseen- needs of their small business.

“The Business Shield Visa card is designed to help business owners navigate the unpredictable financial and resource challenges that come with running a small business,” said Anthony Merola, head of Bank Brand and Small Business Cards at U.S. Bank. “Featuring an industry-leading 0% extended introductory APR on purchases and balance transfers and access to Spend Management, our expense management platform, this card is a transformative solution for both new and seasoned business owners looking to safeguard their business from the unexpected.”

With , part of the comprehensive suite of business solutions that is earning U.S. Bank accolades as , businesses can drive down costs, reduce manual work and save time through the use of robust card controls, integrated accounting, intuitive receipt capture and more – all within a single, easy-to-use dashboard.

The card – which has a sleek, translucent design – also offers:

Purchase Security: When you use your card, your purchases are protected if an item is stolen or damaged.
Extended Protection: Get an extra year on eligible warranties – automatically – when you use your card.
Rewards on prepaid travel: 5% cash back on air, hotel and car reservations booked directly in the Travel Center when you use your card.
Annual statement credit: $50 annual statement credit with $5,000 booked in the Travel Center when you use your card.
Pay over time: Plan annually, available after introductory APR period.
Additional protection benefits: zero fraud liability, auto rental collision insurance and cell phone protection.

To learn more about the Business Shield Card, visit .

Disclosure:
The creditor and issuer of this card is U.S. Bank National Association, pursuant to a license from Visa U.S.A. Inc., and the card is available to United States residents only.

U.S. Bank HOPE Inside program has helped thousands improve financial standing

wpdesigns — Wed, 04 Mar 2026 16:37:28 +0000

The program, launched five years ago, helps communities through financial wellness and coaching

U.S. Bank and Operation HOPE in 2020 debuted HOPE Inside, a partnership aimed at helping participants reduce debt, increase savings and improve credit scores.

That first foray featured one coach focused on credit and money management at a branch in Aurora, Colorado. Five years later, the program has grown to 10 coaches located in branches across California, Colorado, Illinois, Minnesota, Nevada and Wisconsin. Five coaches are bilingual, three are dedicated to small business and two are certified with the U.S. Department of Housing and Urban Development.

Not only has the program physically expanded, it’s also evolved. All coaches are now paired with U.S. Bank business access advisors and mortgage partners to leverage their combined expertise to support program participants on their financial journeys.

“We’re changing financial futures by restoring hope and making financial goals attainable for my clients and community,” said Chicago-based Operation HOPE Inside coach Felicia Adams.

Plans are also underway to expand access to existing U.S. Bank HOPE Inside coaches to additional branches this year to support more members of the communities served by U.S. Bank.

HOPE Inside is accessible to anyone in the community, not just U.S. Bank customers. In areas where coaches are located, individuals can be referred to a HOPE Inside coach by bankers. Coaches work with clients on a range of topics, including managing a budget, building savings, improving credit scores, preparing for home ownership and developing a small business.

“Our partnership with Operation HOPE and its coaches help guide business owners with genuine care, turning financial data into clear, confident steps that empower their everyday entrepreneurial dreams, which complements our commitment to power human potential,” said Will Jackson, a business access advisor in Oakland, California. “This is a well-rounded approach to providing access not just to capital but to information and connections needed to thrive.”

Since 2022, over 8,443 unique clients have been served. In addition to individualized coaching, HOPE Inside coaches have run nearly 2,015 workshops. These workshops range from a few hours to five weeks on topics such as credit and money management, first time homebuyer, and small business development, where participants can walk away with a full business plan.

The program can make a significant impact on participants’ financial health. On average, clients see a 38-point increase in their credit scores, with 50% experiencing an improvement. Additionally, there has been a median reduction of $2,023 in revolving debt, with 40% of clients successfully reducing their debt. Savings have also seen a boost, with a median increase of $750 and 71% of clients increasing their savings.

The program has also contributed to the creation of 83 small businesses and 49 facilitated mortgages, further empowering individuals to achieve financial stability, growth and generational wealth.

“I live less than a mile from the Slauson & Crenshaw Branch (in Los Angeles) where we house a dedicated Operation HOPE office. I have personally witnessed the incredible impact Operation HOPE has had in my community,” said Malgy Blue, branch and small business market leader for Los Angeles. “Their mission aligns perfectly with U.S. Bank’s commitment to financial health, creating a natural partnership that can expand opportunity and drive lasting impact. Together, we can help more people achieve financial confidence and a brighter future.”

Cash vs Digital: How do digital government-to-person payments ease the lives of recipients?

Press Room Team — Fri, 13 Sep 2024 00:41:58 +0000

Imagine having to take a day off work, travel a long distance and wait in line for several hours, rain or shine, to collect assistance or wage payments from the government. Now imagine having to repeat this process every month. This is the reality for millions of people worldwide whose livelihoods depend on government payments and still receive these payments in cash.

Digitalizing these government-to-person (G2P) payments offers an opportunity for many to access their first formal bank account. Account ownership can then open the door to other financial services that can improve people’s lives. Even in cases where recipients might have to withdraw their full payment, simply having their payments deposited digitally can make their lives easier — making the recurrent experience less expensive, safer, more flexible, and overall, more accessible. A digital payment experience that is more accessible and easier than cash payments for recipients will be an integral first step to eventually using their accounts and making digital payments with ease.

The World Bank’s G2Px initiative supports research across the globe to learn what works (and doesn’t) based on experience from recipients receiving digital G2P payments. This data and research then informs the design of World Bank programs in countries.

Findings from qualitative studies across six countries show that digital G2P payments improved recipient’s experience in many ways including:

1. Reduced travel time and cost of collecting payments:

When payments are made in cash, distribution typically occurs in a government office or similar location, with restrictions on the day and time for recipients to collect their payments. Conversely, when payments are sent digitally, they can usually be withdrawn from multiple locations or cash-out points, such as at ATMs, bank branches and banking agents. In most cases, digital payments allow recipients to collect their payments more easily at a lower cost. In Mali, recipients who received payments into mobile money accounts under the Jigisèmèjiri emergency social safety net program appreciated being able to simply walk to the nearest agent. Similarly, recipients of the Vision Umurenge program (VUP) in Rwanda highlighted the significant cost savings from mobile money payments with reduced travel.

Easier access can also reduce time away from work and potentially improve public service delivery when salary payments for government workers are digitized. In the Central African Republic, public wage recipients expressed a high level of satisfaction with mobile money salary payments given lower travel times. Before 2020, many noted that they had to travel long distances, often up to two days, to receive their salary in cash which meant they were also not at their duty post during that time which in turn could lead to delays in the services they were providing to people.

2. More flexibility on when to withdraw funds:

Digital payments offer more flexibility given that recipients can withdraw at a time that best suits them, from a variety of access points. In Morocco, recipients of the DAAM program valued receiving payments into an account as it enables ATM withdrawals to be made 24 hours a day, with no waiting time.

3. Shorter wait time to withdraw payments:

A greater number of cash-out points and flexibility on when to cash out also translate into shorter lines and wait times at the withdrawal point. For instance, in the Philippines, recipients had very different experiences with waiting time depending on the access point they used. In general, however, digital payments used during the second round of the COVID-19 Social Amelioration Program, led to a 40-minute reduction in average wait time versus payments delivered in cash during the first round.

G2P digitalization needs to be designed with recipients at the center to maximize benefits.

While having a better experience with digital payments (as opposed to cash payments) has been documented among many digital G2P payment recipients, it is not a guarantee. Challenges with travel time, cost and waiting can persist in areas where agent, ATMs or bank branches might be scarce. In Bolivia, research conducted in 2022 found that recipients of Renta Dignidad, a universal social pension scheme, needed to withdraw their payments in cash because of limited access points but also recognized the challenge of having to travel every time a payment is made. Another obstacle is ensuring adequate cash availability across access points. Until digital payment ecosystems are further developed, and recipients build more trust with digital payments, fully cashing-out payments the same day when it is received will be commonplace.

There could also be a range of recipient-specific challenges, such as their digital and financial literacy. Indeed, practitioners need to carefully design the roll out of digital G2P payments, focusing on the specific needs of users. Leveraging research like many of the examples highlighted will help better understand, by hearing directly from recipients, what works and what can be improved when it comes to adopting good policy and design choices that put recipients at the center.

Multilateral Development Banks Deepen Collaboration to Deliver as a System

Press Room Team — Sun, 02 Jun 2024 23:09:11 +0000

The leaders of 10 multilateral development banks (MDBs) today announced joint steps to work more effectively as a system and increase the impact and scale of their work to tackle urgent development challenges.

In a Viewpoint Note, the leaders outlined key deliverables for joint and coordinated action in 2024 and beyond, building on the progress since their Marrakesh statement in 2023, as their institutions work to accelerate progress toward the Sustainable Development Goals (SDGs) and to better support clients in addressing regional and global challenges.

Published at the conclusion of a retreat hosted by the Inter-American Development Bank (IDB), which holds the rotating chair of the MDB Heads Group, the actions represent the strengthened collaboration amongst MDBs. The Note will also serve as a valuable contribution for the forthcoming G20 Roadmap to evolve MDBs into a “better, bigger and more effective” system and in other fora.

The MDB Heads committed to concrete and actionable deliverables in five critical areas:

1.    Scaling up MDB financing capacity. MDBs expect to generate additional lending headroom on the order of $300-400 billion over the next decade, with the support of shareholders and partners. Actions include:
– Offering a diverse set of innovative financial instruments to shareholders, development partners and capital markets, including hybrid-capital and risk-transfer instruments, and promoting the channeling of the IMF’s Special Drawing Rights (SDRs) through MDBs.
– Providing more clarity on callable capital, which would help rating agencies better assess the value of callable capital.
– Continuing to implement and report on the G20 Capital Adequacy Framework (CAF) Review recommendations and related reforms.

2. Boosting joint action on climate change. MDBs are increasing their common engagement on climate. Actions include:
– Delivering the first common approach to measuring climate results on adaptation and mitigation.
– Continuing to align operations to the goals of the Paris Agreement and to jointly report on climate financing, as well as engaging in the UN-led process towards a new collective goal on climate finance.
– Continuing to support and improve early-warning systems for natural disasters.

3. Strengthening country-level collaboration and co-financing. MDBs are engaged in discussions and supporting country-owned and country-led platforms to make it easier for countries to work with the banks. Actions include:
– Assessing proposals on country-led and country-owned platforms, towards a common understanding and next steps, including for some MDBs to implement platforms.
– Continue harmonizing procurement practices, including by relying on each other’s procurement policies to reduce transaction costs and increase efficiency and sustainability.
– Accelerating co-financing of public-sector projects through the newly launched Collaborative Co-Financing Portal.

4. Catalyzing private-sector mobilization. MDBs are committed to scaling up private-sector financing for development goals, including by pursuing innovative approaches and financial instruments. Actions include:
– Scaling up local-currency lending and foreign-exchange hedging solutions to boost private investment. MDBs are working to identify scalable approaches.
– Expanding the type and disaggregation of the statistics that MDBs and Development Finance Institutions (DFIs) release through the Global Emerging Markets Risk Database (GEMs) Consortium, supporting investors to better assess investment risks and opportunities.

5. Enhancing development effectiveness and impact. MDBs agreed to heighten the focus on the impact of their work. Actions include:
– Increasing collaboration on joint impact evaluations, including by sharing approaches to monitoring and assessing impact, and pursuing harmonization initiatives, where useful.
– Taking stock of the key performance indicators (KPIs) on nature and biodiversity that are currently in use and explore the feasibility of alignment of some indicators ahead of COP30 in 2025.

About the IDB Group

The Inter-American Development Bank Group (IDB Group) is the main source of financing for sustainable and inclusive development in Latin America and the Caribbean. With offices in 26 countries of the region, it is focused on improving lives through financial solutions and knowledge that is both relevant and cutting-edge. The IDB Group comprises the IDB, IDB Invest and IDB Lab, which positively impact the region by working with governments, the private sector and innovative entrepreneurs, respectively. Take our virtual tour.

The Digital Maturity of Financial Institutions Is Key for Vulnerable Populations to Access Financial Services

Press Room Team — Tue, 07 May 2024 22:02:00 +0000

New study highlights innovative digital solutions for indigenous populations, migrants and low-income groups.

Banking institutions in Latin America and the Caribbean that achieve digital maturity would help increase the financial inclusion of vulnerable groups, opening up new business opportunities.

This is one of the key conclusions of Digital Transformation Study for Financial Inclusion in Latin America and the Caribbean carried out by IDB Invest and NTT Data. The study surveyed more than 50 executives from 35 financial entities such as banks, neo-banks, cooperatives and institutions of microfinance belonging to 16 countries.

Although the study highlights that 92% of entities have digital channels, such as mobile applications and websites where clients can consult their financial information and make bank transfers, 30% assure that digital clients’ participation is still less than 10%, and only 28% implement options to acquire new products, such as savings or financing accounts.

In the last decade, countries such as Argentina, Bolivia, Brazil, Paraguay and Peru have experienced a significant growth in financial inclusion of more than 28%, as a result of the specific context of each country.

The focus of the entities that offer these services to promote financial inclusion is on the adoption of digital solutions based on online learning and hybrid self-management platforms. These offer flexibility, autonomy and greater proximity for clients to financial services.

For vulnerable populations, the report highlights that it is key to develop credit or loan simulations that offer an easy way to calculate and personalize products. It also recommends credit solutions based on prescriptive analysis that allow not only to identify potential customer behaviors and needs, but also to maximize the probability of success of an action, for example, climate stations that consider the particularities of daily life of indigenous people living in rural areas.

Countries noteworthy for their growth in the digitalization of payments include Argentina, Brazil, Chile, Peru and Venezuela, among others. These countries have seen a significant increase in the use of digital wallets, mobile applications and online payments, both in commercial transactions and in person-to-person (P2P) payments.

For ethnic groups residing in urban or remote areas, the report highlights that the design of financial products aimed at creating communities, and realizing benefits resulting from savings or investment is key. These may include voice authentication functionalities and educational resources in the form of videos to overcome illiteracy barriers as part of the solution.

For migrants who have difficulties transferring remittances to their countries of origin, do not have identity documents or credit history, the report proposes addressing the different stages of migration with a focus on remittance products enabled by digital and cross-border channels, including customizing functionalities.

The study highlights the role regulators play in facilitating a regulatory environment that encourages innovation while protecting the rights of vulnerable populations.

Likewise, financial institutions must consider adopting a digital culture and talent management, investing in innovation, delving into analytical data, expanding the reach and availability of products and remaining a digitally relational bank to achieve digital maturity, and thus expand financial inclusion in the region.

This is the third in the series of studies that IDB Invest has carried out to improve digital transformation processes. The first was in the manufacturing area, followed by agriculture. The third for financial institutions seeks to support them so that they are more competitive and sustainable. An online course on digital transformation perspectives for financial institutions is also included and can be accessed here.

The study was promoted in the context of the launch of FINLAC this month, a new IDB Group initiative to promote financial inclusion by ensuring that the most vulnerable people in Latin America and the Caribbean can access the financial services they need. See here.

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the social and economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About NTT DATA

NTT DATA, part of the NTT Group, is an innovative global IT and business services company headquartered in Tokyo. The company helps clients in their transformation journey through consulting, industry solutions, business process services, digital and IT modernization, and managed services. NTT DATA enables them, as well as society, to move confidently into the digital future. The company demonstrates its commitment to the long-term success of its clients, combining global reach with local attention, to work with them in more than 50 countries around the world through a network of more than 140,000 professionals. To learn more, visit nttdata.com.

ICBA, Travelers Celebrate Program’s 40th Anniversary with 22nd Dividend Payout

Press Room Team — Tue, 23 Jan 2024 13:09:02 +0000

Washington, D.C. (Jan. 18, 2024)—The Independent Community Bankers of America (ICBA) today announced that its partnership with Travelers, which celebrated 40 years in 2023, will provide its 22^nd consecutive annual dividend, bringing its total payout to more than $80 million for community banks around the country. About 1,200 community banks will share a dividend from the Travelers ICBA insurance program’s Policyholder Safety Group Dividend plan based on participation in 2022.

“As a longstanding Preferred Service Provider, Travelers continues to produce tangible results for our members — providing industry leading insurance options and the opportunity to earn returns for their prudent underwriting,” ICBA Senior Executive Vice President of Community Bank Solutions Kevin Tweddle said. “We’re proud of our long-standing affiliation with Travelers and we look forward to continuing our work to empower the nation’s community banks so they can focus on what they do best — building enduring relationships with their customers and bettering their communities.”

In collaboration with ICBA, Travelers has helped thousands of community banks mitigate risks through a suite of insurance products, including property, general liability, auto, workers’ compensation, crime, cyber risks, fiduciary liability, employment practices liability, bankers’ professional liability, directors’ and officers’ liability, and more. Backed by financial stability and a team of industry-leading experts that spans underwriters to claim professionals, Travelers insures and helps protect a community bank’s assets.

“We’re proud to have partnered with the ICBA over the past 40 years, helping community banks address their unique and evolving insurance needs,” said Laura Lundin, vice president of financial institutions at Travelers. “Celebrating this milestone means a great deal to us, because when community banks flourish, so do the communities they serve.”

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.

IMF Board of Governors Approves an increase of IMF members quotas by 50 percent

Press Room Team — Thu, 21 Dec 2023 23:34:50 +0000

Washington, DC: On December, 2023, the Board of Governors of the International Monetary Fund (IMF) concluded the 16th General Review of Quotas and approved an increase of IMF members quotas by 50 percent (SDR 238.6 billion, or US$320 billion), which will bring total quotas to SDR 715.7 billion (US$960 billion). [1] When the voting deadline ended on December 15, 2023, Governors representing 92.86 percent of the total voting power had cast votes in favor of the Resolution, exceeding the 85 percent required.

The Board of Governors’ Resolution, which is based on a recommendation by the IMF’s Executive Board from November 7 (see Press Release No. 23/383), also provides guidance on the size of the IMF’s lending capacity and the mix of resources. Specifically, the Resolution envisages maintaining the IMF’s current lending capacity through a combination of the approved increase in quota resources and reduced reliance on borrowed resources. When the quota increase becomes effective, borrowed resources comprising the New Arrangements to Borrow (NAB) would be reduced and the Bilateral Borrowing Agreements would be phased out. Proposals for a reduction in the size of the NAB and transitional arrangements for maintaining access to Fund borrowing will be discussed by the Executive Board in early 2024 following consultations with creditors.

“I would like to express my gratitude to the Board of Governors for successfully concluding the 16th General Review of Quotas, resulting in a fifty percent increase of the Fund’s permanent resources. The overwhelming support from our membership for this decision is a strong vote of confidence for the work of the Fund. It will reduce the reliance of the Fund on borrowed resources, restore the primary role of quotas in our lending capacity and reinforce the role of the IMF at the center of the Global Financial Safety Net. It will also strengthen the IMF’s capacity to help safeguard global financial stability and respond to members’ potential needs in an uncertain and shock-prone world.” IMF Managing Director Kristalina Georgieva said. “I look forward to the membership’s timely implementation of this important agreement.”

Following the Board of Governors’ approval, the next step is for member countries to consent to their respective quota increases. Members have committed to expeditiously complete this step by the deadline of November 15, 2024. In many cases this involves legislative approval.

The Executive Board also recognized and informed the Board of Governors of the urgency and importance of quota share realignment to better reflect members’ relative positions in the world economy, while protecting the quota shares of the poorest members. In this context, the Board of Governors asked for work to develop, by June 2025, possible approaches as a guide for further quota realignment, including through a new quota formula, under the 17th General Review of Quotas.

ANNEX

The Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The Governor and Alternate Governor are appointed by the member country and the Governors are usually ministers of finance or governors of the central bank. All powers of the IMF not conferred directly to the Board of Governors, the Executive Board or the Managing Director, are vested in the Board of Governors. The Board of Governors may delegate to the Executive Board powers not conferred directly to the Board of Governors by the Articles, and has done so. The Board of Governors normally meets once a year.

The Executive Board (the Board) is responsible for conducting the day-to-day business of the IMF. It is currently composed of 24 Executive Directors, who are elected by a member or a group of member countries. The Managing Director, who serves as Chair of the Executive Board, is the chief of all operating staff of the IMF, and conducts the ordinary business of the Fund under the direction of the Executive Board. The Executive Board operates in continuous session and meets as often as the business of the Fund requires. In carrying out its responsibilities, the Board works largely on the basis of recommendations made by management as set forth in papers prepared by IMF staff.

Quotas are the building blocks of the IMF’s financial and governance structure. Each member is assigned a quota when it joins the Fund and is required to make its quota subscription payment in full. Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account, and reviewed at regular intervals. An individual member country’s quota broadly reflects its relative position in the world economy. Quotas play a key role for the voting power of members in IMF decision making bodies, members’ access to Fund financing, and a member’s share in a general allocation of SDRs.

New Arrangements to Borrow: The New Arrangements to Borrow (NAB) is a standing set of credit arrangements under which the participants (member countries and institutions) commit to provide supplementary resources to the IMF when available quota resources are low relative to member countries’ demand for IMF financial support. The NAB constitutes the second line of defense after quotas. Currently, there are 40 participants that contribute an aggregate of SDR 364 billion, or US$[485] billion, to total IMF resources.

Bilateral Borrowing Agreements: bilateral borrowing agreements between the IMF and a number of members allow the Fund to borrow to ensure sufficient lending capacity and serve as a third line of defense after quotas and the NAB. Currently, bilateral borrowing agreements with 42 creditors are in place that contribute SDR 141 billion, or US$[188] billion, to total IMF resources. The 2020 BBAs have an initial term of three years through end-2023, extendable with creditor consents through end-2024.

Citigroup employees expect management reshuffle, layoffs on Monday, says report

Press Room Team — Thu, 23 Nov 2023 14:36:30 +0000

Citigroup employees expect announcements about management changes and layoffs on Monday in the next phase of the bank’s sweeping reorganization, according to four people familiar with the situation

Employees are awaiting more details about the scale of layoffs at the bank, which employs 240,000 people worldwide.

Citigroup declined to comment. The Financial Times reported the news earlier.

Last month, Citi announced plans to cut management layers from 13 to eight as part of its biggest overhaul in decades. In the two top layers of leadership, Citi reduced 15 per cent of functional roles and eliminated 60 committees, it said in its third quarter earnings presentation.

The third-largest US lender will also eliminate co-heads of divisions and regional roles, cut 50 per cent of internal financial management reporting and centralize decision making, it said in October.

Support staff in compliance and risk management, and technology staff working on overlapping functions are at risk of being laid off, Reuters reported in September.

How New Banking Rules Might Harm Your Business

Press Room Team — Thu, 16 Nov 2023 21:45:42 +0000

Federal regulators are getting ready to implement new rules for banks. The result could be less credit and slower growth for American business.

America’s banking sector is an integral part of the nation’s economy. Companies of all shapes and sizes, across diverse communities, rely on the financing banks provide to start, run, and grow their businesses. However, federal banking regulators in Washington, D.C. may soon increase bank capital requirements that could harm businesses and by extension the American economy.

These policy changes, known as “final Basel III” or “Basel III endgame,“ were developed in 2017 by the Basel Committee on Banking Supervision (BCBS) — a standard setting body made up of bank regulators from around the globe. These standards could do significant harm to main street businesses and the U.S. economy if banking regulators fail to make some major changes when implementing the capital requirement.

Understanding capital requirements

America’s banks are overseen by an alphabet soup of federal regulators each with distinct but interrelated responsibilities, including setting rules requiring banks to hold a certain amount of capital as a means of protecting against losses on loans and investments. Here, “capital” primarily means shareholder equity and financial assets that fund lending and can be used to absorb losses. This capital serves as a buffer to help prevent banks from failing but comes with significant costs to banks, and by extension to their customers.

How businesses bear the cost

When capital requirements for banks are increased, they are forced to choose between offering less financing to customers or offering it a higher cost. As a whole, increasing capital requirements makes it more expensive for banks to provide financing to corporations, main street business, and consumers.

Research from the Basel Committee on Banking Supervision – the body that devised the new capital standards – has shown that more stringent bank regulations make bank credit more expensive for borrowers. In addition, for every percentage point increase in capital requirements, there is an associated increase of up to 13 basis points in loan spreads. Last month, the Wall Street Journal reported that large banks may be required to increase their capital by more than 20 percent.