Multilateral development banks – Strategic actors in the new economy?

The paper addresses the role of multilateral development banks in the new economic paradigm, built in the context of multiple crises with global impact. Multilateral development banks, in their capacity as promoters of governments’ policies are “invited/expected” to play a key role in the new geopolitical architecture, holding a competitive advantage in the provision of finance, which is linked to the design and implementation of structural reforms and programs of strengthening institutions controlled by governments. The paper aims to represent a signal regarding the strategic component and the synergies that multilateral development banks can determine. It highlights the tools that multilateral development banks have for selecting, monitoring and supporting programs and projects with regional and global impact. The paper describes the state of knowledge and reviews the specialised literature in the field of multilateral development banks, describes intervention channels and financing products of multilateral development banks, and discusses their impact on a European and regional level. The concluding remarks address the strategic role of multilateral development banks, their contribution to sustainable development goals and outline directions for future research

Prepayment risk, impact on credit products

Credit pricing is always an important aspect of operations of banks, as loans are generally two thirds of bank assets. Therefore, the study of factors influencing a bank customer behavior and their impact on early repayment of loans may have a significant influence in reducing the risk assumed by such unexpected operations. Objective analysis of prepayment risk is to estimate the probability of repayment to better manage its manifestation. The existence of potential customers that use this option exposes the bank to a number of risks, such as interest rate risk, the maturity mismatch risk and liquidity risk. Proper evaluation and forecasting the evolution of this risk can bring great benefits for a credit institution in the management of loan products and customer relationship: lower risk of over-ensure against fixed rate mortgage, a better management of short-term and long term liquidity needs (thus reducing the risk of over-financing) can offer customers more competitive pricing (achieved by reducing funding costs due to better assessment and management of risks involved early repayment)

A Critical Examination of Foreign Aid Policy. Why it Fails to Eradicate Poverty?

After many decades of perpetuated failures, the foreign aid policy requires a critical reexamination. Doubting the efficiency of the foreign aid under the current institutional frame does not have to be interpreted as abandoning the many and the poor (approximately two thirds of the world’s population, mainly in the underdeveloped countries). The goal itself is not the subject of our critique here, but the ways to address that goal, promoted up to now by developed countries and the UN

A Critical Examination of Foreign Aid Policy. Why it Fails to Eradicate Poverty?

After many decades of perpetuated failures, the foreign aid policy requires a critical reexamination. Doubting the efficiency of the foreign aid under the current institutional frame does not have to be interpreted as abandoning the many and the poor (approximately two thirds of the world’s population, mainly in the underdeveloped countries). The goal itself is not the subject of our critique here, but the ways to address that goal, promoted up to now by developed countries and the UN.poverty trap; third world; foreign aid; economic development.