MDB securitisations: transparency must keep pace with financial innovation
Multilateral development banks (MDBs) are being asked to do more with the capital they have. To meet this challenge, some are turning to securitisations – to free up capital for investment, to mobilise private capital, or a combination of both. Since 2018, over $7.6 billion has been securitised by MDBs. Such transactions have also become more frequent, which raises a series of questions regarding what we can see about the transactions and their implications for development finance. This blog unpacks the latest trends in MDB securitisations and highlights instances where improvements in transparency are important for the proper governance of the institutions involved.
