The Banking Executive Magazine - August 2023 Issue

ISSUE 176 AUGUST 2023 the BANKING EXECUTIVE 1 Editorial CHANGING TIMES FOR BIG BANKS THAT HELP COUNTRIES Today, the world is facing many big problems like health scares, money troubles, and changes in our environment. Because of this, there is a strong need for big banks, known as Multilateral Development Banks (MDBs), to change how they work. These banks are special because they have the knowledge and money to help countries grow. But there is a problem: these banks aren't giving as much help as countries need. We have to stop arguing about small details and start thinking about the bigger picture. One big idea is the Triple Mandate. This means that these banks should also think about important worldwide issues like climate change, protecting plants and animals, and getting ready for health emergencies. By 2030, we want these banks to give three times more money to help countries. Everyone has to help make this happen. Poor countries, for example, need an extra $30 billion every year. For countries that are a bit richer, they can use their own money to cover half of what they need. But they still need help from outside. One big solution is private money. Even though these big banks have the tools to get private money,they are not doing it enough. By fixing problems and taking risks, they can attract more private money. Finally, there is a new idea called the Global Challenges Mechanism. This means different groups like governments and businesses come together to offer more ways to get money. This could help fix some of the issues these big banks have. In short, the big banks that help countries need to change and adapt. It will not be easy, but if they do, they can make a big difference in the world. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers