Global Agenda Council on Financing & Capital 2012-2014
The role of financial institutions is to provide financing and capital to meet the needs of individuals, companies and society as a whole. When they do this well, they help to create and maintain an efficient and functional economy by facilitating sustainable growth and prosperity. But in the current environment, certain impediments make it harder for capital to flow where it is most needed.
What the Council is doing about it
The World Economic Forum created the Council on Financing & Capital last year to identify these impediments and to find ways in which they can be overcome. The Council outlined a “vicious cycle” that hampers the efficient allocation of capital. It has four distinct yet interconnected elements:
- Unduly complicated regulatory compliance burdens
- A lack of trust in financial institutions and regulators
- A lack of transparency
- A failure by the media to present bias-free reports about the financial system
The Council took steps to address this cycle in two specific ways. The first was to identify how mistrust of financial institutions and regulators stems from a lack of understanding of the roles banks should perform. This work was validated at a session entitled “Banks in the Real Economy” at the Annual Meeting 2013. The second was the drafting of a white paper – “Breaking the Logjam of Capital Allocation” – which was used during the Annual Meeting to raise awareness and provide thought-leadership on these issues. The Council Chair also presented this white paper at the financial services “Access to Capital” private session at the Annual Meeting.
For the next 12 months, the Council’s objective is to further define the impediments that prevent small and medium-sized enterprises (SMEs) from accessing financing. It is focusing on these companies because of their extensive contribution to economic growth.
“But in the current environment, certain impediments make it harder for capital to flow where it is most needed.”
The Council will conduct a brief survey and use the results to provide an opinion on the differences between perceptions of what is happening in the SME space and reality. The ultimate goal is to use the Council’s survey results, as well as other literature, to find ways to improve access to finance for SMEs.
To get involved please contact
Research Analyst: Ethan Huntington, Senior Associate, Global Agenda Councils, firstname.lastname@example.org
Council Manager: Isabella Reuttner, Associate Director, Financial Institutions Industries, email@example.com
Forum Lead: Giancarlo Bruno, Senior Director, Head of Financial Services Industries, firstname.lastname@example.org
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