BRIDGETOWN, Barbados, CMC – The Barbados-based Caribbean Growth Financial institution (CDB) on Friday stated it has launched a pioneering feasibility research to design a brand new Contingent Capital Facility for multilateral growth banks.
“This partnership represents an vital step in our transformation right into a extra agile and resilient establishment,” stated CDB president Daniel Finest.
“The research will enable us to proactively discover options that may enhance our monetary flexibility and be sure that we stay conscious of the varied and dynamic challenges going through the Caribbean,” he added.
The CDB acknowledged that the initiative is being undertaken in collaboration with the Multilateral Growth Financial institution (MDB) Problem Fund and that this 12-month pilot undertaking will look at progressive methods to strengthen capital adequacy, improve lending capability, and enhance the CDB’s monetary resilience.
The area’s premier monetary establishment acknowledged that this initiative is a part of CDB’s ongoing dedication to monetary innovation and assembly the evolving wants of its Borrowing Member International locations (BMCs), significantly throughout occasions of financial volatility and uncertainty.
The research is supported by the MDB Problem Fund, a coalition comprising the Rockefeller Basis, the Invoice & Melinda Gates Basis, and the Open Society Foundations.
CDB’s Facility design companions are Cantium, Ardhill Advisory, and Linklaters.
The financial institution acknowledged that an interim report will probably be launched by September 2025, forward of the Worldwide Financial Fund (IMF) and World Financial institution Annual Conferences in October, with the ultimate report scheduled for publication prematurely of the Spring Conferences in 2026.
The CDB stated that the initiative aligns with the G20’s Capital Adequacy Framework agenda and contributes to broader world efforts to modernize the multilateral growth finance system.
The research highlights that investigating the potential of contingent capital devices underscores a rising development amongst multilateral growth banks (MDBs) to embrace monetary innovation as a instrument to reinforce growth impression.
The research is a key element of CDB’s technique to future-proof its monetary framework and broaden its potential to ship high-impact growth options throughout the Caribbean, the financial institution stated.
