Global Banking Rules Are Failing Emerging Markets by Vera Songwe, Jendayi Frazer and Peter Blair Henry

While the Basel III framework has helped prevent a repeat of the 2008 global financial crisis, it has also made it harder for banks to finance critical infrastructure projects in developing economies. Addressing this requires updating regulatory models that treat such investments as riskier than they are.

STANFORD/WASHINGTON, DC – In an era of shrinking resources for development finance, global policymakers must shift their focus to making better use of existing funds. Identifying and removing regulatory barriers that hinder the efficient deployment of capital to emerging markets and developing economies (EMDEs) is a good place to start.