In order to minimise pooling loss data in risk-management practices among multilateral development banks, IFC, a member of the World Bank Group, and the European Investment Bank (EIB) have signed a cooperation agreement creating a Global Emerging Markets (GEMs) Risk Database Consortium.
It provides a consistent framework for potential partners, including international financial institutions (IFIs) such as the European Bank for Reconstruction and Development, the African Development Bank, and the Inter-American Development Bank, which will be joining the Consortium.
Credit-risk data, such as default and recovery rates, have become a key element of the risk assessment process. The initiative will provide such information and strengthen risk management practices among organizations along with a common platform for enhancements and knowledge sharing.
In collaborating to create this data consortium, IFC and EIB have structured the data in a way that keeps counterparts’ identities anonymous and preserves data confidentiality. Lars Thunell, IFC Executive Vice President and CEO, said: “This is a great knowledge-sharing opportunity for IFC. We are pleased to be a part of this initiative, which will help strengthen risk management practices worldwide.”
Philippe Maystadt, President of EIB, said: “In the context of promoting the development of the financial markets in emerging countries, the GEMs Risk Database initiative will enhance the cooperation and synergies among IFIs.”
