Improving access to funding for local banks
2015 saw the EBRD invest up to US$ 33 million (€30.4 million equivalent) in Frontclear, a new company that aims to establish more stable and inclusive access to local and global interbank markets for financial institutions in developing markets.
Properly functioning interbank markets can improve the capacity of local banks to manage risk, thereby improving access to finance for local firms and stimulating activity in the real economy.
Frontclear, which provides guarantees to cover counterparty risk, also offers training and advice to financial institutions and regulators to boost their risk management capacity and conducts research at the client and market levels. The company executed its first guarantee in September and has an ambitious deal pipeline in the EBRD region and other countries.