Objective: To increase lending without substantially increasing risks or damaging credit rating by using their existing risk bearing capital more effectively and efficiently.
- Engage with shareholders and credit rating agencies with options for increased capital efficiency while maintaining AAA ratings and highest standards of balance sheet quality
- Consider fully deploying exposure exchanges as a mechanism to reduce sovereign concentration risk
- Develop concrete proposals for financial innovations using their concessional windows within prudential risk management and debt sustainability frameworks
- Evaluate full range of instruments that share risk in their non-sovereign operations with private investors to free up risk capital or crowd-in and mobilize additional resources
- Engage shareholders in considering net income measures that could improve their capital position
See G20 MDB Balance Sheet Optimization Action Plan here