Capital Markets Development : A Primer for Policymakers
The COVID-19 pandemic adds further challenges to the development of capital markets. For many emerging markets and developing economies challenges have intensified because of (i) the deterioration in the macroeconomic environment, including the con...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/228291627375113518/Capital-Markets-Development-A-Primer-for-Policymakers http://hdl.handle.net/10986/36058 |
| Summary: | The COVID-19 pandemic adds further
challenges to the development of capital markets. For many
emerging markets and developing economies challenges have
intensified because of (i) the deterioration in the
macroeconomic environment, including the contraction of the
economies, and larger fiscal deficits, (ii) reduced investor
appetite due to uncertainty, and (iii) the nature and scale
of the interventions used by governments to support the
economy which, while necessary, might have limited the
viability of different capital markets solutions, at least
in the short to medium term. That said, this does not alter
the fundamental premise that it is important to develop
alternative finance mechanisms for key strategic sectors.
Rather, if anything, the need for capital markets solutions
is more critical than ever given the much more limited space
that governments, and potentially also banks, will have
going forward to support new financing. This Primer will be
followed by a series of practitioner papers. As part of its
knowledge management agenda, the WBG is working towards
deepening the understanding of the use of capital markets to
finance strategic sectors, from corporate to infrastructure,
housing, SME, and climate change financing. Along these
lines, reports will be prepared, as appropriate, to help
practitioners identify the key challenges that could prevent
the mobilization of capital markets financing to these
strategic sectors as well as key actions to address them. |
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