World Bank Capital Markets Strenghtening Facility


The Capital Markets Strengthening Facility is an innovative cross-cutting initiative with the overall objective to develop stable and resilient capital markets and to facilitate long-term local currency financing for sectors critical for economic growth and poverty reduction. SECO?s funds are earmarked to its priority countries in the "South".

Country/region Period Budget
Colombia
Egypt
Ghana
Global
Indonesia
Peru
Tunisia
Vietnam
South Africa
01.01.2015 - 30.06.2021
CHF 14'435'001
Background

The unmet long-term financing needs in developing countries in areas such as infrastructure, housing, as well as micro, small, and medium-size enterprises (MSMEs) are very large and have been rising rapidly fuelled by economic growth, increases in global trade, and a rapid pace of urbanization. Much greater domestic private sector participation will be needed to provide the necessary funding as public sector funding is becoming increasingly constrained and also banks, the traditional providers of capital for infrastructure, will likely not be able to provide the required financing going forward.

Objectives

As its overall goal, the facility aims to develop stable and resilient capital markets.

It is innovative in that it addresses the challenges to capital market development in a comprehensive manner encompassing the regulatory framework, market infrastructure, capacity of market participants and regulators and provides transactions support. The proposed facility will follow a new ?deep-dive? approach, with reform efforts taking into consideration the interplay between the development of government and corporate bond markets, equity financing and corporate governance. Accordingly, under this facility all relevant WBG units participate in the implementation of the comprehensive reform agenda.

Medium-term outcomes

Building deep, broad, and stable securities markets, including: (i) government bond markets, (ii) local currency non-government bond markets, (iii) equity markets.

Strengthening corporate governance frameworks for listed companies, SOEs, and financial institutions.

Developing sound non-bank financial institutions (NBFIs), focusing on: (i) the insurance sector- (ii) private pensions- and (iii) investment funds, reforming the legal, regulatory, and institutional framework, with the aim of mobilizing domestic and international savings for the financing of infrastructure, housing, and MSMEs.

Offering inclusive capital market and non-bank finance solutions, specifically to: (i) Households, including in the areas of housing finance and microinsurance- (ii) MSMEs, including through programs to expand the private equity and venture capital offering.

Results

Expected results:  

Providing advisory services.

Proposing and assisting the drafting of laws, regulations and rules.

Recommending procedures, policies, practices, standards.

Building the capacity of relevant government and non-government actors through workshops, training events, seminars, conferences.

Executing analytical work including diagnostics studies, assessments.

Developing knowledge management products such as publications, toolkits, databases.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development


Budget Current phase Swiss budget CHF   14'435'001 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   50'000'000
Project phases Phase 1 01.01.2015 - 30.06.2021   (Current phase)