The Determinants of Risk Exposure When Development Finance Institutions Consider Approval of Funding to Different Development Markets—Case Study Development Bank of Southern Africa

This paper evaluates the determinants of risk exposure when development finance institutions consider approval of funding to different development markets utilising multiple regression econometric models and the Development Bank of South Africa(DBSA)as a case study.The research presents the classical development finance institution(DFI)business model and market size estimation with the contemporary DFI risk classification and enterprise risk management framework.In addition to reviewing the profile of financial and non-financial products and services,the related project cycles and the DFI credit risk pricing and mitigation approaches for the different development markets.Our results suggest that there is a correlation between the funding of under-resourced municipalities by DBSA and its exposure to financial risk though the correlation is not overwhelmingly significant,but also evidence of a negative correlation between the funding of under-resourced municipalities and the minimization of the financial risk exposure of DBSA.Likewise,there is a negative correlation between funding to all three different sizes of a municipality and ability of the DFI to absorb future losses(non-performing loan coverage ratio).The negative correlation is highest for secondary cities followed by metros and least for under resourced municipalities.The research concludes with four major recommendations of what the role of the DFI should be in enhancing access of under-resourced municipalities to development funding.

An Inside View of Microcredit in Panama： The Financial Investment in MFIs

The idea of this survey on microfinance in Panama arises from the importance of this financial sector in Latin America, in particular this paper analyzes the system of microcredit and estimate, among other things, the financial needs of the institutions of microcredit as a potential target of international investment. The present paper aims to provide a cognitive framework on microcredit in Panama. It wants to demonstrate how this country can be an area in which international investors can operate considering that this form of credit can improve their yields especially in countries, such as Panama, characterized by high interest rates. Under the methodological point of view, the paper considers the financial variables of microcredit in Panama. In this way, it reaches the goal of the research to identify MFIs （micro finance institutions） as a potential target of investors.

Green Finance:A New Source of Growth for Banks

Entering the first year of the 13th FiveYear Plan（2016-20）period,the Central Government has laid a focus on pushing forward supply-side structural reform,promoting new breakthroughs in green development and speeding up the expansion of green finance.In other words,

China’s role in scaling up energy storage investments

Accelerating the planning and development of a new power system that is more renewable energy-based is a strategic priority of achieving“dual carbon”goals(peaking carbon emissions before 2030 and becoming carbon neutral before 2060)in China.The large-scale development of energy storage technologies will address China’s flexibility challenge in the power grid,enabling the high penetration of renewable sources.This article intends to fill the existing research gap in energy storage technologies through the lens of policy and finance.Results indicate that policy uncertainties in renewable energy might undermine domestic investor confidence in energy storage technologies,while insufficient economic incentives may crowd out private sector participation.Drawing on international best practices,blended concessional finance,supported by development partners,can play a significant role in closing energy storage financing gaps in China and in countries of the Belt and Road Initiative(BRI).To deliver on China’s domestic and international climate commitments,this article makes three policy recommendations:(1)moving forward with a carbon pricing agenda that incentivizes energy storage investments in China;(2)tapping the potential of the domestic capital market to close financing gaps for novel energy storage technologies;(3)scaling up energy storage supply chains in BRI countries through multilateral cooperation.

How Should Financial Reform Serve the Real Economy?

During the 13th Five-Year Plan(2016-20)period,China must improve the efficiency of the financial sector in serving the real economy.Following this principle,five major tasks should be undertaken,which include improving the financial environment to achieve higher efficiency in resource allocation,supporting innovation and business startups,facilitating the role of investment in stimulating growth,and developing a system of diversified financial institutions.

REFORMS TAKE SHAPE

In his government work report,Premier Li Keqiang vowed to deepen the reform of the financial sector in 2016.It includes efforts to improve the financial regulatory system,further liberalize interest rates and improve the market-based mechanism for setting the yuan exchange rate.

THE TALE OF A BANK

New multilateral financial institution initiated by China shoulders highexpectationsFrom an idea on paper to a fully fledged body,the Asian Infrastructure Investment Bank（AIIB）was finally unveiled after two years of preparation.On January 16,