Money Market Diagnostic Technical Cooperation Framework

Overview
Project Summary Document

TCRS 16698

Status Approved

Location

Regional

Business Sector

Capital and financial markets development

Notice Type

Public

PSD Disclosed

06 Dec 2022

Project Description

Money markets development is crucial for establishing self-sustaining local currency markets that would improve local currency (LCY) financing conditions for local borrowers including small and medium enterprises (SMEs). Recognising this, the European Bank for Reconstruction and Development (EBRD) supported the development of the Money Market Diagnostic Framework (MMDF), which is a public good that assesses the state of development of money markets and main obstacles to it, documents the plan that stakeholders can collectively implement to improve money markets. MMDF is a practical but comprehensive tool that can be applied in a wide range of countries, which allows for peer comparison between countries of application and track developments through time. MMDF is widely recognised within the international financial institutions (IFI) community as a high-quality diagnostic tool, leading to its application in a number of jurisdictions beyond the Bank’s countries of operation.

Money Market Diagnostic (MMDs) are structured around four building blocks, the first of which assesses the current level of money market (MM) development, including by considering the activities of domestic and foreign market participants, the variety and depth of various MM segments and instruments, the availability and quality of benchmark interest rates and yield curves, collateral in market operations and market information. The other three MMD building blocks consider potential policy and institutional reasons for the underdevelopment of money markets, including (i) environment (i.e., monetary policy and legal framework, credit risk, transaction costs, post-trade infrastructure, payment system, prudential regulation, etc.); (ii) central bank activity (i.e., reserve requirements, banking sector liquidity, central bank operations, collateral, etc.) and (iii) resources (i.e., central bank human resources (HR), market HR, information technology (IT)). The diagnostic reports provided to authorities under the MMDF contain a series of policy recommendations targeting identified market gaps, representing an appropriately sequenced and targeted approach to local market development for each country’s specific circumstances.

The MMDF is expected to be used by the national authorities in drawing practical conclusions and taking steps towards improving the monetary policy transmission, deepening local money markets as well as by international investors as a source of understanding of the situation in the local markets, thus reducing their uncertainty and promoting investment volumes. Finally, the MMD is believed to support a reform dialogue between the authorities and international financial and development institutions.

The work on MMDF is led by Treasury department, who is steering the Bank's work on local currency and money market.

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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

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 16698

Status Approved

Location

Regional

Business Sector

Capital and financial markets development

Notice Type

Public

PSD Disclosed

06 Dec 2022

Project Description

The work on MMDF is led by Treasury department, who is steering the Bank's work on local currency and money market.

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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

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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Money Market Diagnostic Technical Cooperation Framework

Project Description

Understanding Transition

Business opportunities

Enquiries

Business opportunities

General enquiries

Project Description

Understanding Transition

Business opportunities

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)