These two objectives are not contradictory. Indeed, it is necessary to help address the ongoing short-term financing needs of client countries in the fight against the Covid-19 shock while simultaneously promoting sustainable growth. Interventions in some areas – such as health or social safety nets – emerge as key priorities.
Free flows of capital in a globalised world marked by all kinds of disruptions, unleashed by economic and non-economic forces, the quests for high returns by investors and quick profits by speculators, fraudulent practices, excessive risk-taking and violent economic cycles, amongst others, have made regulation and supervision of financial institutions an unprecedentedly challenging task.