Developing the non-bank domestic institutional investor base in LCY debt markets

Overview
Project Summary Document

TCRS 9680

Status Approved

Location

Regional

Business Sector

Capital and financial markets development

Notice Type

Public

PSD Disclosed

09 May 2018

Project Description

This Technical Cooperation (TC) framework is taking place within the European Bank for Reconstruction and Development (the “EBRD” or “Bank”) Initiative on Local Currency (LCY) and Capital Markets Development.

As countries move closer to advanced market status, the storage of LCY savings typically progressively diversifies from the banking sector to the growing non-bank institutional investor base. Hence in more developed markets, non-bank institutional investors such as public and private pension funds, mutual funds including money market funds, asset management companies, and life insurance companies are important participants in both money and capital markets. They participate as qualified investors not only in the spot markets but also in derivative transactions as the market develops, and can improve economies’ overall risk allocation as well as financial stability. Their presence and influence also improve transparency, governance, and credit rating functions of the market, which are beneficial for the entire financial ecosystem.

While non-bank institutional investors are key participants in financial markets, they are under-developed in the EBRD’s Countries of Operation (“CoO”). The Bank aims to support the authorities in CoO to develop the non-bank domestic institutional investor base managing LCY liquidity and LCY debt asset portfolios (e.g. bond, money market instruments and other debt assets) (the “Institutional Investor Base”, or “IIB”) next to the banking sector, so as to:

Keep local savings denominated in LCY and within the domestic financial system, and channel them to the local economies of CoO;

Diversify LCY funding sources with various terms and price conditions for the local economy in complement to the banking sector;

Diversify business models and investment strategies in the LCY debt and money markets, to improve market liquidity and extend the range of investment options having different risk-return profiles;

Improve resilience of the local economy by securing more steady and long-term flows of LCY capital from the IIB, which are typically more stable than those of international investors.

The Project will consist of two Assignments:

Assignment 1 will focus on the identification of key factors and comprehensive framework for the successful development of IIB and on the assessment CoO’s IIB development potential;

Assignment 2 will propose detailed development strategy and roadmap for the IIB of three selected CoO.

Enquiries

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

TCRS 9680

Status Approved

Location

Regional

Business Sector

Capital and financial markets development

Notice Type

Public

PSD Disclosed

09 May 2018

Project Description

Keep local savings denominated in LCY and within the domestic financial system, and channel them to the local economies of CoO;

Diversify LCY funding sources with various terms and price conditions for the local economy in complement to the banking sector;

Diversify business models and investment strategies in the LCY debt and money markets, to improve market liquidity and extend the range of investment options having different risk-return profiles;

Improve resilience of the local economy by securing more steady and long-term flows of LCY capital from the IIB, which are typically more stable than those of international investors.

The Project will consist of two Assignments:

Assignment 1 will focus on the identification of key factors and comprehensive framework for the successful development of IIB and on the assessment CoO’s IIB development potential;

Assignment 2 will propose detailed development strategy and roadmap for the IIB of three selected CoO.

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Developing the non-bank domestic institutional investor base in LCY debt markets

Project Description

Enquiries

Business opportunities

General enquiries

Project Description

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)