Several of the current BCBS proposed amendments to the regulatory capital framework, if implemented as drafted, will have pronounced impacts on Emerging Market (EM) economies, directly and indirectly impacting the various avenues available for EM borrowers to obtain finance. This paper summarizes some of the key impacts for borrowers and product-types that are central to EM economies, specifically where the proposals stand to impact the provision of finance to business, as well as other financial products that are essential for the ability of EMs to generate growth.
The issues highlighted here are not exhaustive, and should be viewed alongside other EM-specific impacts amongst the BCBS proposals, including those affecting the provision of consumer finance, the efforts to reduce housing shortages in some countries, and local legal specificities that impact operational risk calculations.Â
