The Reserve Bank of India (RBl) has, by an order dated June 26, 2025, imposed a monetary penalty of ₹14.30 lakh (Rupees Fourteen Lakh Thirty Thousand only) on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat (the bank) for non-compliance with the certain directions issued by RBI on ‘Donations to Trusts and Institutions where Directors, their relatives hold position or are interested’ and ‘Management of Advances – UCBs’ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
donated certain amount to a trust in which the bank’s director’s relative was interested; and
failed to ensure end-use of funds with respect to certain loans sanctioned by it.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
The Reserve Bank of India (RBl) has, by an order dated June 24, 2025, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Saibaba Nagari Sahakari Bank Maryadit, Sailu, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had failed to:
upload the KYC records of certain customers onto Central KYC Records Registry (CKYCR) within the prescribed time; and
carry out periodic updation of KYC of certain customers as per the prescribed periodicity.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
The Reserve Bank of India (RBl) has, by an order dated June 24, 2025, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Saibaba Nagari Sahakari Bank Maryadit, Sailu, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had failed to:
upload the KYC records of certain customers onto Central KYC Records Registry (CKYCR) within the prescribed time; and
carry out periodic updation of KYC of certain customers as per the prescribed periodicity.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) received during the month of June 2025 are set out in Tables 1 to 7.
Highlights:
Lending Rates:
The weighted average lending rate (WALR) on fresh rupee loans of SCBs declined to 9.20 per cent in May 2025 from 9.26 per cent in April 2025.
The WALR on outstanding rupee loans of SCBs dropped marginally to 9.69 per cent in May 2025 from 9.70 per cent in April 2025.1
1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs moderated to 8.90 per cent in June 2025 from 8.95 per cent in May 2025.
The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of SCBs was 61.6 per cent at end-March 2025 (60.6 per cent at end-December 2024), while that of MCLR linked loans was 34.9 per cent (35.9 per cent at end-December 2024).1
Deposit Rates:
The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.11 per cent in May 2025 as compared to 6.34 per cent in April 2025.
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was 7.07 per cent in May 2025 (7.10 per cent in April 2025).1
Ajit Prasad Deputy General Manager (Communications)
In southern Africa townships were built as segregated urban zones for black people. They were created under colonial and white minority rule policies that controlled movement, confined opportunity, and kept people apart.
I grew up in a different historic black township in Zimbabwe, but Mbare was the first of its kind. It holds a unique place in the nation’s imagination.
Mbare was originally named Harare. But in 1982 that name was reassigned to the capital city that houses it. In its storied past, it was once the heartbeat of black urban life. At its centre is Rufaro Stadium, where Bob Marley and the Wailers famously performed at Zimbabwe’s independence celebrations.
The township was a hub of cultural energy, sports, and political activism, and the community beer hall served as a vital gathering point. Today, many of these beer halls stand derelict.
These once-thriving communal spaces reflect a broader neglect of civic infrastructure in post-independence Zimbabwe. Yet out of these ruins, new life is taking shape.
One of the most influential figures in Zimbabwe’s artist-run spaces movement, Moffat Takadiwa, has transformed one of these former beer halls into the Mbare Art Space. The dynamic arts hub reclaims the building’s original spirit of gathering, creativity and public engagement.
Operating under a long lease from the Harare City Council, this nonprofit initiative is part of a wider urban renewal and adaptive reuse project aimed at reimagining the city’s cultural infrastructure.
My ongoing work in archival research includes mapping and visiting historical and cultural spaces like this. Here Takadiwa saw the potential for not just studios and an exhibition venue, but also for dialogue and community regeneration.
Transforming spaces
Beer halls were established by British colonial authorities in Zimbabwe (then Rhodesia) as part of a strategy of social control over the African urban population. They were designed to regulate leisure, restrict political organising and generate revenue through the sale of alcohol. By centralising drinking in state-run facilities, colonial administrators aimed to monitor and contain African social life while profiting from it.
Situated in a repurposed colonial-era beer garden, Mbare Art Space turns a former site of segregation into a vibrant centre of artistic and communal revival. It redefines a legacy of constraint and control as one of creative freedom and empowerment. The place is now an artists’ haven with studios, office space, an exhibition hall and a digital hub.
Takadiwa’s vision is informed by global precedents, notably inspired by US artist Theaster Gates, whose work includes the transformation of a derelict bank on Chicago’s South Side. It became the Stony Island Arts Bank – a hybrid space for art, archives and community engagement.
Takadiwa opened Mbare Art Space in 2019 with a vision to support emerging artists through mentorship and access to resources. True to his artistic philosophy – resurrecting abandoned, often overlooked materials suffering the effects of urban decay – he revitalised a neglected site. Most of the artists working from this space follow his lead, upcycling and recycling found materials into compelling visual forms that speak to both history and possibility.
When I arrive, Takadiwa is on his way out, but offers me a quick tour of his studio, where works in progress for his upcoming participation in the São Paulo Biennale are taking shape.
Known for his lush, densely layered sculptures and tapestry-like works made from found objects – computer keyboards, bottle tops, toothbrushes, and toothpaste tubes – Takadiwa has garnered international acclaim. His works are collected by US rapper Jay-Z and major institutions like the Centre National d’Art Plastique in Paris, the European Parliament’s art collection in Brussels, and the National Gallery of Zimbabwe in Harare.
Collaboration
What Takadiwa is building is not just an arts centre – it’s a new model space rooted in history and responsive to the present. The site itself becomes an ongoing installation, activated by the artists, curators and community members who inhabit it.
Tafadzwa Chimbumu, the operations manager, takes over the tour, guiding me through the rest of the precinct. The site retains the bones of its beer hall architecture, but it bursts with new life. Colourful murals adorn the walls. Tents draped over smaller buildings animate the exposed brickwork.
Plans are underway to establish a library here, a resource where researchers and artists can engage with Zimbabwe’s under-documented art history. Much of this history is scattered across archives and unpublished dissertations, rather than in widely available books. The aim is to bring these materials together and make them more accessible to the public.
Mbare Art Space is also becoming an exciting hub for collaboration and education. Community workshops, for example, are led by resident artists. Local schools take part in art education initiatives. Through community outreach and educational programming, the centre is extending its impact beyond its immediate geography.
As it looks to the future, Mbare Art Space is focused on expanding its artist-in-residence programme, inviting both local and international artists to immerse themselves in the context of Mbare and Zimbabwe.
Ultimately, what the space offers is something intangible – a feeling, a memory, a vision of what is possible when history and imagination meet in a shared place.
Tinashe Mushakavanhu does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Source: The Conversation – Africa – By Richard Calland, Emeritus Associate Professor in Public Law, UCT. Visiting Adjunct Professor, WITS School of Governance; Director, Africa Programme, University of Cambridge Institute for Sustainability Leadership, University of Cambridge
But there is an opportunity to recast development finance as strategic investment: “country platforms”.
Country platforms are government-led, nationally owned mechanisms that bring together a country’s climate priorities, investment needs and reform agenda, and align them with the interests of development partners, private investors and implementing agencies. They function as a strategic hub: convening actors, coordinating funding, and curating pipelines of projects for investment.
Think of them as the opposite of donor-driven fragmentation. Instead of dozens of disconnected projects driven by external priorities, a country platform enables governments to set the agenda and direct finance to where it is needed most. That could be renewable energy, climate-smart agriculture, resilient infrastructure, or nature-based solutions.
The Independent High Level Expert Group on Climate Finance, on which I serve, is striving to find new ways to ramp up finance – both public and private – in quality and quantity. I agree with those who argue that country platforms could be the innovation that unlocks the capital urgently needed to tackle climate overshoot and buttress economic development.
The model is already being tested. More than ten countries have launched their platforms, and more are in the pipeline.
For African countries, the opportunity could not be more timely. African governments are racing to deliver their Nationally Determined Contributions. These are the commitments they’ve made to reduce their greenhouse gas emissions as part of climate change mitigation targets set out in the Paris Agreement. Implementing these plans is often being done under severe fiscal constraints.
At the same time global capital is looking for investment opportunities. But it needs to be convinced that the rewards will outweigh the risks.
Where it’s being tested
In Africa, South Africa’s Just Energy Transition Partnership has demonstrated both the potential and the complexity of a country platform. Egypt and Senegal also have country platforms at different stages of implementation. Kenya and Nigeria are exploring similar mechanisms. The African Union’s Climate Change and Resilient Development Strategy calls for country platforms across the continent.
New entrants can learn from countries that started first.
But country platforms come in different shapes and sizes according to the context.
Another promising example is emerging through Mission 300, an initiative of the World Bank and African Development Bank, working with partners like The Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All. It aims to connect 300 million people to clean electricity by 2030.
Central to this initiative are Compact Delivery and Monitoring Units. These are essentially country platforms anchored in electrification. They reflect how a well-structured country platform can make an impact. Twelve African countries are already moving in this direction. All announced their Mission 300 compacts at the Africa Heads of State Summit in Tanzania.
This growing cohort reflects a continental commitment to putting energy-driven country platforms at the heart of Africa’s development architecture.
Why now – and why Africa?
A well-functioning country platform can help in a number of ways.
Firstly, it can give the political and economic leadership a clear goal. The platform can survive elections and show stability, certainty and transparency to the investment world.
Secondly, national ownership and strategic alignment can reduce risk and build confidence. That would encourage investment.
Thirdly, it builds trust among development partners and investors through clear priorities, transparency, and national ownership.
Fourthly, it moves beyond isolated pilot projects to system-level transformation – meaning structural change. The transition in one sector, energy for example, creates new value chains that create more, better and safer jobs. Country platforms put African governments in charge of their own economic development, not as passive recipients of climate finance.
The country sets its investment priorities and then the match-making with international climate finance can begin.
Making it work: what’s needed
Developing the data on which a country bases its investment and development plans, and blending those with the fiscal, climate and nature data, is complex. For this reason country platforms require investment in institutional capacity, cross-ministerial collaboration, and strong coordination between finance ministries, environment agencies and economic planners. And especially, in leadership capability.
African countries must take charge of this capacity and capability acceleration.
Second, development partners can respond by providing money as well as supporting African leadership, aligning with national strategies, and being willing to co-design mechanisms that meet both investor expectations and local realities.
Capacity is especially crucial given the scale of Africa’s needs. According to the African Development Bank, Africa will require over US$200 billion annually by 2030 to meet its climate goals. Donor aid will provide only a fraction of this. It will require smart, coordinated investment and careful debt management. Country platforms provide the structure to govern the process.
Seizing the opportunity
Country platforms represent one of the most promising innovations in climate and development finance architecture. Properly designed and led, they offer African countries the opportunity to take ownership of their climate and development futures – on their own terms.
Country platforms could be the “buckle” that finally enables the supply and demand sides of climate finance to come together. It will require commitment, strategic and technical capability, and, above all, smart leadership.
Richard Calland works for the University of Cambridge Institute for Sustainability Leadership. He is also an Emeritus Associate Professor at the University of Cape Town and an Adjunct Visiting Professor at the University of Witwatersrand School of Governance. He serves on the Advisory Council of the Council for the Advancement of the South African Constitution, Chairs of the Board of Sustainability Education and is a member of the Board of Chapter Zero Southern Africa.
Source: The Conversation – Africa – By Gabrielle Wills, Senior researcher at Research on Socio-Economic Policy, Stellenbosch University
Matric exams are a crucial moment in a young person’s educational journey.Fani Mahuntsi/Gallo Images via Getty Images
At the dawn of democracy in 1994, South Africa faced a sobering reality. Fewer than a third of 25- to 34-year-olds had achieved at least a matric (12 years of schooling completed) or equivalent qualification.
Thirty years on, the proportion of individuals in this age group that had completed their schooling had almost doubled to 57%. This figure will be further bolstered by the record-breaking results in the National Senior Certificate (matric) examinations in recent years. South Africa’s school completion rates are now high and comparable to other middle-income countries.
But this good news is tempered by very high youth unemployment and a faltering economy. What are the prospects for young South Africans once they’ve matriculated?
I have aimed to answer this question in my new study. By using the Quarterly Labour Force Survey – a nationally representative, household-based sample survey – and other data sources, I have developed six insights that tell us what the post-matric landscape is like today. For the purposes of the study I defined recent matriculants as 15-24-year-olds with 12 years of completed schooling.
This study highlights how increasingly larger proportions of recent matriculants find they have limited opportunities. The rising number of youth leaving school with a matric, especially in recent years, is not being met with enough opportunities beyond school, whether in work or in post-school education and training.
Conditions in South Africa’s labour market must improve and further expansion in quality post-school education and training is required for the country to realise the benefits of rising educational attainment and progress for national development.
1. Less chance of employment
The graph below illustrates a brutal truth: ten years ago finding a job was easier for matriculants than it will be for the matric class who finished school in 2024. Between 2014 and 2018 about 4 of every 10 recent matriculants who were economically active (including discouraged work seekers) were employed. By the start of 2024 this figure was closer to 3 of every 10.
Percent of South African youth employed by qualification level. Dr Gabrielle Wills, CC BY-NC-ND
The likelihood of youth with a matric having a job at the start of 2024 roughly resembled the chances of youth without a matric having a job eight to ten years ago.
With more learners progressing to matric, especially due to more lenient progression policy during and just after the COVID-19 pandemic, changes in the composition of the matric group could be driving some of the declines in this group’s employment prospects. But there has been a deterioration in the labour market for all youth over the past decade. Employment prospects have even declined for youth with a post-school qualification.
2. Not in employment, education or training
Proportionally fewer recent matriculants are going on to work or further study.
Before the COVID-19 pandemic (2014-2019), around 44%-45% of recent matriculants were classified as “not in employment, education or training” (NEET). The NEET rate among recent matriculants peaked at 55% in early 2022 and remained high at 49.8% at the start of 2024.
Stated differently, one of every two recent matriculants was not engaged in work or studies in the first quarter of last year. That’s 1.78 million individuals. Coupled with the rising numbers of youth getting a matric, this implies that the number of recent matriculants who were not working or studying rose by half a million from the start of 2015 to the start of 2024.
Among all 15-24-year-olds, the NEET rate rose from 32% in the first quarter of 2014 to 35% in the first quarter of 2024. Even larger increases in the NEET rate occurred among 25-34-year-olds, rising from 45% to 52% over the same period.
This is a worry. But it doesn’t mean the matric qualification has no value.
3. A matric still provides an advantage
In early 2024, nearly half of matriculants aged 15-24 were classified as not in employment, education or training. Almost 8 out of 10 of their peers who had dropped out of school were NEET. In short, you’re still more likely to get a job or further your studies with a matric certificate than without one.
4. A hard road
The road to opportunity beyond school is harder than it was a decade ago.
Among NEET matriculants aged 15-24 at the start of 2014, 27% searched for work for more than a year. By early 2024, this figure had risen to 32%.
It’s even worse for 25-34-year-old NEETs who hold a matric qualification. The percentage searching for work for over a year rose from 37% at the start of 2014 to 50% in early 2024.
The longer young people remain disconnected from employment, education or training, the greater the toll on their mental health. NEET status is associated with worse mental health, particularly among young men.
5. Post-school education and training
The government has made ambitious plans to expand opportunities for young people to study further. But enrolments in post-school education and training are not growing sufficiently to match the rising tide in school completion or to absorb youth who cannot find jobs. And, with projected declines in real per student spending on post-school education as South Africa tries to address escalating national debt servicing costs, this situation is unlikely to improve anytime soon.
The country is not keeping pace with tertiary enrolment rates in other developing nations like Brazil, Indonesia or China. For instance, 2021 estimates from the World Bank identify South Africa’s tertiary enrolment rate at 25%, compared to 41% in Indonesia, 57% in Brazil and 67% in China.
6. Location matters
Where someone lives in South Africa influences their chances for upward mobility. These inequalities are reflected in varying youth NEET rates across provinces. For instance, a third of recent matriculants in the Western Cape were not in employment, education or training in 2023/2024. That figure more than doubles in the North West province to 67%.
How to help
Two things are needed: improving labour market conditions and expanding post-school education and training opportunities.
This is unlikely without improved economic growth.
All of this may sound hopeless. But there are things that ordinary South Africans can do, too:
keep encouraging young people in your orbit to complete their schooling
where possible, spur them on to obtain a post-school qualification
use your social networks to connect youth to work experience opportunities, and help with CVs, referral letters and references.
Young people must also adopt a practical, pragmatic and entrepreneurial mindset. They need to seize every opportunity available to them, whether in the labour market or post-school education.
Gabrielle Wills is a senior researcher with Research on Socio-Economic Policy at Stellenbosch University. This research for the COVID-Generation project was made possible by financial support from Allan and Gill Gray Philanthropies. The findings and conclusions contained within are those of the authors and do not necessarily reflect positions or policies of Allan & Gill Gray Philanthropies.
Global crises have shaped our world over the past two decades, affecting education systems everywhere. Higher education researcher Emmanuel Ojo has studied the impact of these disruptions on educational opportunities, particularly in southern Africa.
He looked at 5,511 peer-reviewed articles published between 2000 and 2024 to explore what the research suggests about making education systems more resilient. Here, he answers some questions about his review.
What are the global crises that have undermined education?
In my review I drew up a table documenting how multiple crises have disrupted education systems worldwide.
The cycle began with the 2000-2002 dot-com bubble collapse, which reduced education funding and slowed technological integration. This was followed by the 2001 terrorist attacks, Severe Acute Respiratory Syndrome (SARS) outbreak (2002-2004), Iraq War (2003-2011), Indian Ocean tsunami (2004), and Hurricane Katrina (2005). The Israeli-Palestinian conflict since 2000, global food crisis (2007-2008), financial crisis (2007-2008), and European debt crisis (2010-2012) continued this pattern of disruption.
More recently, the Ebola epidemic, COVID-19 pandemic, and Russia-Ukraine war have destabilised education systems. Meanwhile, the ongoing climate crisis creates challenges, particularly in southern Africa where environmental vulnerability is high.
Who suffers most, and in what ways?
Education has consistently been among the hardest-hit sectors globally. According to Unesco, the COVID pandemic alone affected more than 1.6 billion students worldwide.
But the impact is not distributed equally.
My research shows crises have put vulnerable populations at a further disadvantage through school closures, funding diversions, infrastructure destruction and student displacement. Quality and access decline most sharply for marginalised communities. Costs rise and mobility is restricted. Food insecurity during crises reduces attendance among the poorest students.
In southern Africa, the Covid-19 disruption highlighted existing divides. Privileged students continued learning online. Those in rural and informal settlements were completely cut off from education.
Climate change compounds these inequalities. Unicef highlights that climate disasters have a disproportionate impact on schooling for millions in low-income countries, where adaptive infrastructure is limited.
What’s at stake for southern Africa is the region’s development potential and social cohesion. The widening of educational divides threatens to create a generation with unequal opportunities and capabilities.
What makes southern African education systems fragile?
Southern Africa’s geographic exposure to climate disasters combines with pre-existing economic inequalities. The region’s digital divide became starkly visible during the Covid-19 pandemic. Some students were excluded from learning by limited connectivity and unreliable electricity.
The region’s systems also rely on external funding. The Trump administration’s sudden foreign aid freeze was a shock to South Africa’s higher education sector. It has affected public health initiatives and university research programmes.
Research representation itself is unequal. Within the region, South African researchers dominate and other nations make only limited contributions. This creates blind spots in understanding context-specific challenges and solutions.
Each successive crisis deepens educational divides, making recovery increasingly difficult and costly. Weaker education systems make the region less able to respond to other development challenges, too.
How can southern Africa build education systems to withstand crises?
One striking finding from my review was the surge in educational research after the Covid-19 pandemic began – from 229 studies in 2019 to nearly double that in 2020, with continued rapid growth thereafter. This indicates growing recognition that education systems must be redesigned to withstand future disruptions, not merely recover from current ones.
Research points to a number of ways to do this:
Strategic investment in educational infrastructure, particularly digital technologies, to ensure learning continuity.
Equipping educators with skills to adapt teaching methods during emergencies.
Innovative, context-appropriate teaching approaches that empower communities.
Integration of indigenous knowledge systems into curricula, enhancing relevance, adaptability and community ownership.
Interdisciplinary and cross-national research collaborations.
Protection of education budgets, recognising education’s role in crisis recovery and long-term stability.
Community engagement in education, ensuring interventions are culturally appropriate and widely accepted.
In my view, African philanthropists have a duty to provide the independent financial base that education systems need to withstand external funding fluctuations.
What’s the cost of doing nothing?
The economic and social costs of failing to build resilient education systems are profound and long-lasting. Each educational disruption creates negative effects that extend far beyond the crisis period.
When students miss critical learning periods, it reduces their chances in life. The World Bank estimates that learning losses from the Covid-19 pandemic alone could result in up to US$17 trillion in lost lifetime earnings for affected students globally.
Social costs are equally severe. Educational disruptions increase dropout rates, child marriage, early pregnancy, and youth unemployment. These outcomes create broader societal challenges that require costly interventions across multiple sectors.
Spending on educational resilience avoids those costs.
The question isn’t whether southern African nations can afford to invest in educational resilience, but whether they can afford not to.
The choices made today will determine whether education systems merely survive crises or make society better. Evidence-based policies and regional cooperation are essential for building education systems that can fulfil Southern Africa’s human potential.
Emmanuel Ojo receives funding from National Research Foundation (NRF).
European Commission Press release Brussels, 30 Jun 2025 On the occasion of the 4th International Conference on Financing for Development, the European Commission and the European Investment Bank (EIB) announced today a new type of guarantee agreement that will provide up to €5 billion to de-risk investments and expand EIB operations outside the EU.
Christine Lagarde, President of the ECB, Philip R. Lane, Member of the Executive Board of the ECB
Sintra, 30 June 2025
Good afternoon, ECB Chief Economist Philip Lane and I welcome you to this press conference, on the occasion of the conclusion of the 2025 assessment of our monetary policy strategy.
The Governing Council recently agreed on an updated monetary policy strategy statement. You can find this statement on our website, together with an explanatory overview note and the two occasional papers presenting the underlying analyses.
I will start by putting this strategy assessment into the broader context. Philip Lane will then go through the updated strategy statement and explain what has changed and why, as well as what has remained unchanged.
Following the strategy review we carried out in 2020-21, the Governing Council committed to “assess periodically the appropriateness of its monetary policy strategy, with the next assessment expected in 2025”. Such regular assessments ensure that our framework, toolkit and approach remain fit for purpose in a changing world.
And the world has changed significantly over the last four years. Some of the issues we were most concerned about back in 2021 – including inflation being too low for too long – have taken a rather different turn.
Not only did we see inflation surge, but some fundamental structural features of our economy and the inflation environment are changing: geopolitics, digitalisation, the increasing use of artificial intelligence, demographics, the threat to environmental sustainability and the evolution of the international financial system.
All of those suggest that the environment in which we operate will remain highly uncertain and potentially more volatile. This will make it more challenging to conduct our monetary policy and fulfil our mandate to keep prices stable.
During the strategy assessment, we asked: what do these changes mean for the way we assess the economy, conduct our policy, use our toolkit, take our decisions and communicate them? In seeking to answer this question, our mindset was forward-looking.
On the whole, we concluded that our monetary policy strategy remains well suited to addressing the challenges that lie ahead.
But our strategy also needs to be updated and adjusted in certain areas, so that the ECB can remain fit for purpose in the years to come. The next assessment is expected in 2030.
With our updated strategy statement, we are taking a comprehensive perspective on the challenges facing our monetary policy, so that the ECB can remain an anchor of stability in this more uncertain world.
This is our core message to the euro area citizens we serve: the new environment gives many reasons to worry, but one thing they do not need to worry about is our commitment to price stability.
The ECB is committed to its mandate and will keep itself and its tools updated to be able to respond to new challenges.
Let me conclude by thanking, on behalf of the Governing Council, all the colleagues across the Eurosystem who have contributed to this assessment in a great team effort.
I now hand over to our Chief Economist Philip Lane and, following his remarks, we will be ready to take your questions.
Christine Lagarde, President of the ECB, Philip R. Lane, Member of the Executive Board of the ECB
Sintra, 30 June 2025
Good afternoon, ECB Chief Economist Philip Lane and I welcome you to this press conference, on the occasion of the conclusion of the 2025 assessment of our monetary policy strategy.
The Governing Council recently agreed on an updated monetary policy strategy statement. You can find this statement on our website, together with an explanatory overview note and the two occasional papers presenting the underlying analyses.
I will start by putting this strategy assessment into the broader context. Philip Lane will then go through the updated strategy statement and explain what has changed and why, as well as what has remained unchanged.
Following the strategy review we carried out in 2020-21, the Governing Council committed to “assess periodically the appropriateness of its monetary policy strategy, with the next assessment expected in 2025”. Such regular assessments ensure that our framework, toolkit and approach remain fit for purpose in a changing world.
And the world has changed significantly over the last four years. Some of the issues we were most concerned about back in 2021 – including inflation being too low for too long – have taken a rather different turn.
Not only did we see inflation surge, but some fundamental structural features of our economy and the inflation environment are changing: geopolitics, digitalisation, the increasing use of artificial intelligence, demographics, the threat to environmental sustainability and the evolution of the international financial system.
All of those suggest that the environment in which we operate will remain highly uncertain and potentially more volatile. This will make it more challenging to conduct our monetary policy and fulfil our mandate to keep prices stable.
During the strategy assessment, we asked: what do these changes mean for the way we assess the economy, conduct our policy, use our toolkit, take our decisions and communicate them? In seeking to answer this question, our mindset was forward-looking.
On the whole, we concluded that our monetary policy strategy remains well suited to addressing the challenges that lie ahead.
But our strategy also needs to be updated and adjusted in certain areas, so that the ECB can remain fit for purpose in the years to come. The next assessment is expected in 2030.
With our updated strategy statement, we are taking a comprehensive perspective on the challenges facing our monetary policy, so that the ECB can remain an anchor of stability in this more uncertain world.
This is our core message to the euro area citizens we serve: the new environment gives many reasons to worry, but one thing they do not need to worry about is our commitment to price stability.
The ECB is committed to its mandate and will keep itself and its tools updated to be able to respond to new challenges.
Let me conclude by thanking, on behalf of the Governing Council, all the colleagues across the Eurosystem who have contributed to this assessment in a great team effort.
I now hand over to our Chief Economist Philip Lane and, following his remarks, we will be ready to take your questions.
Today at 11:30 CET, we will announce the results of our strategy assessment.
At 13:00 CET / 12:00 noon Lisbon time, President Christine Lagarde and Chief Economist Philip R. Lane will answer questions from journalists in a press conference.
After four consecutive sessions of gains, benchmark equity indices ended lower on Monday as investors chose to book profits in the absence of strong domestic cues.
The BSE Sensex declined by 452 points, or 0.54 per cent, to settle at 83,606.46. The index oscillated between an intra-day high of 84,099.53 and a low of 83,482.13. The NSE Nifty also lost ground, shedding 120.75 points, or 0.47 per cent, to close at 25,517.05, after moving within a narrow range through the session.
Despite the subdued performance of the headline indices, the broader market continued to display resilience. The Nifty Midcap100 rose by 0.6 per cent, while the Nifty Smallcap100 added 0.52 per cent, suggesting sustained investor interest in mid- and small-cap stocks.
Among the Sensex constituents, Axis Bank, Kotak Mahindra Bank, Maruti Suzuki, Bajaj Finance, Reliance Industries, Tata Steel and Bharti Airtel were among the major laggards. On the other hand, Trent, State Bank of India, Bharat Electronics, Titan, Bajaj Finserv and Eicher Motors recorded notable gains.
Sectorally, performance was mixed. PSU banks outperformed, with the Nifty PSU Bank index jumping 2.66 per cent. Shares of Maharashtra Bank, Punjab National Bank, Bank of Baroda, Union Bank of India, Canara Bank, UCO Bank, Indian Bank and Punjab & Sind Bank advanced sharply during the session.
Other sectors including IT, consumer durables, pharma, healthcare, media and energy indices ended in positive territory. However, indices tracking automobiles, banking, financial services, FMCG, metals, realty, private banks and oil & gas sectors closed in the red.
Vinod Nair, Head of Research at Geojit Financial Services, observed that while global cues have turned marginally positive on hopes of easing geopolitical tensions and progress in a potential US trade agreement, the domestic market paused to consolidate recent gains.
“Investors are now looking ahead to the upcoming corporate earnings season, with mid- and small-cap segments showing strength in anticipation of improved results supported by healthy consumer demand and better margins,” he said.
The India VIX, which measures market volatility, rose by 3.2 per cent to 12.78, indicating a slight uptick in investor caution.
Meanwhile, the rupee weakened by 0.21 per cent to trade near 85.70 against the US dollar, as profit booking and long unwinding weighed on the currency following recent gains.
“The rupee came under pressure ahead of a crucial week marked by key US data releases and the expiry of the 90-day extended tariff deadline. The domestic unit is expected to remain volatile in the 85.35–86.00 range,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
After four consecutive sessions of gains, benchmark equity indices ended lower on Monday as investors chose to book profits in the absence of strong domestic cues.
The BSE Sensex declined by 452 points, or 0.54 per cent, to settle at 83,606.46. The index oscillated between an intra-day high of 84,099.53 and a low of 83,482.13. The NSE Nifty also lost ground, shedding 120.75 points, or 0.47 per cent, to close at 25,517.05, after moving within a narrow range through the session.
Despite the subdued performance of the headline indices, the broader market continued to display resilience. The Nifty Midcap100 rose by 0.6 per cent, while the Nifty Smallcap100 added 0.52 per cent, suggesting sustained investor interest in mid- and small-cap stocks.
Among the Sensex constituents, Axis Bank, Kotak Mahindra Bank, Maruti Suzuki, Bajaj Finance, Reliance Industries, Tata Steel and Bharti Airtel were among the major laggards. On the other hand, Trent, State Bank of India, Bharat Electronics, Titan, Bajaj Finserv and Eicher Motors recorded notable gains.
Sectorally, performance was mixed. PSU banks outperformed, with the Nifty PSU Bank index jumping 2.66 per cent. Shares of Maharashtra Bank, Punjab National Bank, Bank of Baroda, Union Bank of India, Canara Bank, UCO Bank, Indian Bank and Punjab & Sind Bank advanced sharply during the session.
Other sectors including IT, consumer durables, pharma, healthcare, media and energy indices ended in positive territory. However, indices tracking automobiles, banking, financial services, FMCG, metals, realty, private banks and oil & gas sectors closed in the red.
Vinod Nair, Head of Research at Geojit Financial Services, observed that while global cues have turned marginally positive on hopes of easing geopolitical tensions and progress in a potential US trade agreement, the domestic market paused to consolidate recent gains.
“Investors are now looking ahead to the upcoming corporate earnings season, with mid- and small-cap segments showing strength in anticipation of improved results supported by healthy consumer demand and better margins,” he said.
The India VIX, which measures market volatility, rose by 3.2 per cent to 12.78, indicating a slight uptick in investor caution.
Meanwhile, the rupee weakened by 0.21 per cent to trade near 85.70 against the US dollar, as profit booking and long unwinding weighed on the currency following recent gains.
“The rupee came under pressure ahead of a crucial week marked by key US data releases and the expiry of the 90-day extended tariff deadline. The domestic unit is expected to remain volatile in the 85.35–86.00 range,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Today, the Reserve Bank released the June 2025 issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability.
Highlights:
Elevated economic and trade policy uncertainties are testing the resilience of the global economy and the financial system.
Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment. Alongside, existing vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to amplify fresh shocks.
Despite an uncertain and challenging global economic backdrop, the Indian economy remains a key driver of global growth, underpinned by sound macroeconomic fundamentals and prudent macroeconomic policies.
The domestic financial system is exhibiting resilience fortified by healthy balance sheets of banks and non-banks. Financial conditions have eased supported by accommodative monetary policy and low volatility in financial markets. The strength of the corporate balance sheets also lends support to overall macroeconomic stability.
The soundness and resilience of scheduled commercial banks (SCBs) are bolstered by robust capital buffers, multi-decadal low non-performing loans ratio and strong earnings.
Results of macro stress tests affirm that most SCBs have adequate capital buffers relative to the regulatory minimum even under adverse stress scenarios. Stress tests also validate the resilience of mutual funds and clearing corporations.
Non-banking financial companies (NBFCs) remain healthy with sizable capital buffers, robust earnings and improving asset quality.
The consolidated solvency ratio of the insurance sector also remains above the minimum threshold limit.
Lima, June 30, 2025 (GLOBE NEWSWIRE) — Lima, PERU, June 30, 2025 – Credicorp Ltd. (“Credicorp” or “the Company”) (NYSE:BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, through its subsidiary Grupo Credito S.A. initiates legal action against the Peruvian Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria – SUNAT), for disregarding the law and the decision of SUNAT´s Review Committee (Comité Revisor), whose rulings are binding under current legislation. The Company expresses concern that SUNAT is ignoring the legal framework in effect at the time of the transactions in question, thereby undermining legal certainty for companies operating in Peru.
The transactions in question involved Grupo Crédito S.A. purchasing Banco de Crédito del Perú (BCP) shares from Credicorp Ltd. in 2018 and 2019, through the Lima Stock Exchange. At the time, Peruvian law exempted such transactions from income tax, provided that the transferred shares did not exceed 10% of the total outstanding shares of the issuing company within a 12-month period.
These transactions were communicated to the Superintendencia del Mercado de Valores (SMV), approved by the Superintendencia de Banca, Seguros y AFP (SBS), and duly registered with Registro Central de Valores y Liquidaciones (CAVALI). They were conducted transparently and in full compliance with applicable legal and regulatory requirements.
Credicorp notes that this case was previously reviewed by SUNAT’s own Review Committee, which confirmed the authenticity of the transactions and found no grounds for tax elusion claims. Nevertheless, SUNAT has reopened the matter and is now seeking over S/. 1.5 billion in purported unpaid income tax and accrued interest. Credicorp views this action as a serious breach of legal predictability, given it involves both the disregard of established legal norms, and the reopening of a case already assessed and resolved by SUNAT’s own Review Committee. In accordance with International Accounting Standards, no expense provisions are necessary.
Credicorp is evaluating this new development and will respond through all appropriate legal and administrative channels. Grupo Crédito S.A., the entity involved, reaffirms its commitment to full regulatory and tax compliance, and to protecting the interests of its employees, clients, and investors.
About Credicorp: Credicorp (NYSE: BAP) is the leading financial services holding company in Peru with presence in Chile, Colombia, Bolivia, and Panama. Credicorp has a diversified business portfolio organized into four lines of business: Universal Banking, through Banco de Crédito del Peru (“BCP”) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance & Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management & Advisory, through Credicorp Capital, Wealth Management at BCP and ASB Bank Corp.
For further information please contact the IR team: investorrelations@credicorpperu.com Investor Relations Credicorp Ltd.
MUNCIE, Ind., June 30, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (Nasdaq:FRME) will release second quarter 2025 financial results on July 23, 2025. The Corporation will host a second quarter 2025 earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, July 24, 2025.
In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
FOR IMMEDIATE RELEASE For more information, contact: Nicole M. Weaver, First Vice President and Director of Corporate Administration 765-521-7619 http://www.firstmerchants.com
MUNCIE, Ind., June 30, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (Nasdaq:FRME) will release second quarter 2025 financial results on July 23, 2025. The Corporation will host a second quarter 2025 earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, July 24, 2025.
In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
FOR IMMEDIATE RELEASE For more information, contact: Nicole M. Weaver, First Vice President and Director of Corporate Administration 765-521-7619 http://www.firstmerchants.com
India recorded a notable expansion in its overseas financial assets during the financial year 2024–25, largely driven by stronger overseas direct investments, higher holdings in currency and deposits, and a rise in reserve assets, according to the latest data released by the Reserve Bank of India (RBI).
More than 72 per cent of the total increase in India’s foreign financial assets came from these three components, with reserve assets alone contributing over half the growth. The central bank noted that currency and deposits, along with direct investments abroad, also made significant contributions to this expansion.
“Over 72 per cent of the rise in India’s overseas financial assets was due to an increase in overseas direct investment, currency and deposits,” the RBI said.
In absolute terms, India’s total external financial assets rose by USD 105.4 billion during FY25. By contrast, the country’s external financial liabilities increased by USD 74.2 billion. This resulted in net claims of non-residents on India declining by USD 31.2 billion over the year.
The RBI report pointed out that this decline was largely due to a sharper increase in Indian residents’ overseas financial assets—up by USD 60.0 billion—compared to the rise in foreign-owned assets in India, which stood at USD 25.8 billion during the January–March 2025 quarter.
Reflecting this trend, the ratio of India’s international financial assets to its international financial liabilities improved to 77.5 per cent in March 2025, up from 74.1 per cent a year earlier. This indicates a strengthening of India’s external financial position, offering greater stability in the country’s balance of payments.
On the liability side, inward direct investments, loans, and currency and deposits remained key drivers. Inward direct investment and loans together made up more than three-fourths of the rise in foreign liabilities of Indian residents in the January–March 2025 period. Loans increased by USD 10.0 billion, while inward direct investments rose by USD 9.7 billion during the quarter.
India recorded a notable expansion in its overseas financial assets during the financial year 2024–25, largely driven by stronger overseas direct investments, higher holdings in currency and deposits, and a rise in reserve assets, according to the latest data released by the Reserve Bank of India (RBI).
More than 72 per cent of the total increase in India’s foreign financial assets came from these three components, with reserve assets alone contributing over half the growth. The central bank noted that currency and deposits, along with direct investments abroad, also made significant contributions to this expansion.
“Over 72 per cent of the rise in India’s overseas financial assets was due to an increase in overseas direct investment, currency and deposits,” the RBI said.
In absolute terms, India’s total external financial assets rose by USD 105.4 billion during FY25. By contrast, the country’s external financial liabilities increased by USD 74.2 billion. This resulted in net claims of non-residents on India declining by USD 31.2 billion over the year.
The RBI report pointed out that this decline was largely due to a sharper increase in Indian residents’ overseas financial assets—up by USD 60.0 billion—compared to the rise in foreign-owned assets in India, which stood at USD 25.8 billion during the January–March 2025 quarter.
Reflecting this trend, the ratio of India’s international financial assets to its international financial liabilities improved to 77.5 per cent in March 2025, up from 74.1 per cent a year earlier. This indicates a strengthening of India’s external financial position, offering greater stability in the country’s balance of payments.
On the liability side, inward direct investments, loans, and currency and deposits remained key drivers. Inward direct investment and loans together made up more than three-fourths of the rise in foreign liabilities of Indian residents in the January–March 2025 period. Loans increased by USD 10.0 billion, while inward direct investments rose by USD 9.7 billion during the quarter.
Data on sectoral deployment of bank credit for the month1 of May 2025 collected from 41 select scheduled commercial banks (SCBs), accounting for about 95 per cent of the total non-food credit by all SCBs, are set out in Statements I and II.
On a year-on-year (y-o-y) basis, non-food bank credit2 as on the fortnight ended May 30, 2025, grew3 by 9.8 per cent as compared to 16.2 per cent during the corresponding fortnight of the previous year (i.e., May 31, 2024).
Highlights of the sectoral deployment of bank credit3 as on the fortnight ended May 30, 2025 are given below:
Credit to agriculture and allied activities registered a y-o-y growth of 7.5 per cent (21.6 per cent in the corresponding fortnight of the previous year).
Credit to industry recorded a y-o-y growth of 4.9 per cent, compared with 8.9 per cent in the corresponding fortnight of the previous year. Among major industries, outstanding credit to ‘all engineering’, ‘construction’ and ‘rubber, plastic and their products’ recorded an accelerated y-o-y growth.
Credit to services sector moderated to 9.4 per cent y-o-y (20.7 per cent in the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to ‘non-banking financial companies’ (NBFCs). Credit growth to ‘computer software’ segment remained robust.
Credit to personal loans segment registered a decelerated y-o-y growth of 13.7 per cent, as compared with 19.3 per cent a year ago, largely due to moderation in growth of ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’.
Ajit Prasad Deputy General Manager (Communications)
The annual growth rate of the broad monetary aggregate M3 stood at 3.9% in May 2025, unchanged from the previous month, averaging 3.8% in the three months up to May. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 5.1% in May from 4.7% in April. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to -0.1% in May from 0.6% in April. The annual growth rate of marketable instruments (M3-M2) increased to 11.2% in May from 10.7% in April.
Chart 1
Monetary aggregates
(annual growth rates)
Data for monetary aggregates
Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 3.2 percentage points (up from 3.0 percentage points in April), short-term deposits other than overnight deposits (M2-M1) contributed 0.0 percentage points (down from 0.2 percentage points) and marketable instruments (M3-M2) contributed 0.7 percentage points (as in the previous month).
Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.5% in May, compared with 3.4% in April, while the annual growth rate of deposits placed by non-financial corporations stood at 2.7% in May, compared with 2.6% in April. Finally, the annual growth rate of deposits placed by investment funds other than money market funds decreased to 15.4% in May from 21.2% in April.
Counterparts of the broad monetary aggregate M3
The annual growth rate of M3 in May 2025, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: net external assets contributed 2.6 percentage points (up from 2.5 percentage points in April), claims on the private sector contributed 2.4 percentage points (up from 2.3 percentage points), claims on general government contributed 0.2 percentage points (as in the previous month), longer-term liabilities contributed -1.2 percentage points (down from -1.1 percentage points), and the remaining counterparts of M3 contributed -0.1 percentage points (as in the previous month).
Chart 2
Contribution of the M3 counterparts to the annual growth rate of M3
(percentage points)
Data for contribution of the M3 counterparts to the annual growth rate of M3
Claims on euro area residents
The annual growth rate of total claims on euro area residents stood at 2.0% in May 2025, compared with 1.9% in the previous month. The annual growth rate of claims on general government stood at 0.6% in May, compared with 0.5% in April, while the annual growth rate of claims on the private sector stood at 2.5% in May, compared with 2.4% in April.
The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) stood at 2.8% in May, unchanged from the previous month. Among the borrowing sectors, the annual growth rate of adjusted loans to households stood at 2.0% in May, compared with 1.9% in April, while the annual growth rate of adjusted loans to non-financial corporations stood at 2.5% in May, compared with 2.6% in April.
Chart 3
Adjusted loans to the private sector
(annual growth rates)
Data for adjusted loans to the private sector
Notes:
Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
“Private sector” refers to euro area non-MFIs excluding general government.
Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.
Governing Council confirms symmetric 2% inflation target over the medium term
Symmetry requires appropriately forceful or persistent policy response to large, sustained deviations of inflation from target in either direction
All tools remain in toolkit and their choice, design and implementation will enable an agile response to new shocks
Structural shifts such as geopolitical and economic fragmentation and increasing use of artificial intelligence make the inflation environment more uncertain
The Governing Council of the European Central Bank (ECB) today published the results of its strategy assessment, which are set out in an updated monetary policy strategy statement.
Following the strategy review carried out in 2020-21, the Governing Council announced that it would periodically assess the appropriateness of its monetary policy strategy. The assessment published today meets this commitment, ensuring that our framework, toolkit and approach remain fit for purpose.
The monetary policy strategy enables the Governing Council to respond effectively to major changes in the inflation environment. This is especially important as ongoing structural shifts, such as geopolitical and economic fragmentation, increasing use of artificial intelligence, demographic change and the threat to environmental sustainability, suggest that the inflation environment will remain uncertain and potentially more volatile, with larger deviations from the symmetric 2% inflation target.
To maintain the symmetry of the target, appropriately forceful or persistent monetary policy action in response to large, sustained deviations of inflation from the target in either direction is important. This will help to avoid inflation expectations becoming de-anchored and inflation deviations from the target becoming entrenched.
“I am happy to announce that the Governing Council during its latest meeting approved the ECB’s updated monetary policy strategy”, said ECB President Christine Lagarde. “This assessment was a valuable opportunity to challenge our thinking, check our policy toolkit and fine-tune our strategy. It provides us with an even stronger basis to conduct monetary policy and fulfil our mandate of price stability in an increasingly uncertain environment.”
All monetary policy tools currently available to the Governing Council will remain in its toolkit. Their use at any time will continue to be subject to a comprehensive proportionality assessment. Their choice, design and implementation will be sufficiently flexible to enable an agile response to changes in the inflation environment.
In monetary policy decisions the Governing Council takes into account not only the most likely path for inflation and the economy but also surrounding risks and uncertainty, including through the appropriate use of scenarios and sensitivity analyses.
The first regular monetary policy meeting of the Governing Council applying the updated strategy will be held on 23-24 July 2025. The Governing Council intends to assess periodically the appropriateness of its monetary policy strategy, with the next assessment expected in 2030.
Prior to the 2025 strategy assessment, the Governing Council concluded strategy reviews in 2003 and 2021.
Over the last 12 months the Governing Council has held seminars, presentations, discussions and meetings dedicated to the strategy assessment.
The strategy assessment is the result of a significant collaborative effort over this period. It involved staff of the ECB and national central banks across the euro area and was organised into two separate workstreams.
Opening remarks by António Guterres, Secretary-General of the United Nations, at the Opening of the 4th International Conference on Financing for Development FFD4 (Sevilla, Spain).
“Your Majesties,
Excellencies, ladies and gentlemen,
I thank the Government and people of Spain for welcoming us to Sevilla for this important conference.
For decades, the mission of sustainable development has united countries large and small, developed and developing.
Together, we achieved progress.
Reducing global poverty and hunger.
Saving lives with stronger health care systems.
Getting more children into school.
Expanding opportunities for women and girls.
And strengthening social safety nets.
But today, development and its great enabler — international cooperation — are facing massive headwinds.
We are living in a world where trust is fraying and multilateralism is strained.
A world with a slowing economy, rising trade tensions, and decimated aid budgets.
A world shaken by inequalities, climate chaos and raging conflicts.
The link between peace and development is clear.
Nine of the ten countries with the lowest Human Development Indicators are currently in a state of conflict.
Excellencies,
Financing is the engine of development.
And right now, this engine is sputtering.
As we meet, the 2030 Agenda for Sustainable Development — our global promise to transform our world for a better, fairer future — is in danger.
Two-thirds of the Sustainable Development Goals targets are lagging.
Achieving them requires an investment of more than $4 trillion a year.
But this is not just a crisis of numbers.
It’s a crisis of people.
Of families going hungry.
Of children going unvaccinated.
Of girls forced to drop out of school.
We are here in Sevilla to change course.
To repair and rev up the engine of development to accelerate investment at the scale and speed required.
And to restore a measure of fairness and justice for all.
Excellencies,
The Sevilla Commitment document is a global promise to fix how the world supports countries as they climb the development ladder.
I see three areas of action.
First — we must get resources flowing. Fast.
Countries must lead by mobilizing domestic resources and investing in areas of greatest impact: schools, health care, social protection, decent work, and renewable energy.
Unlocking these investments requires strengthening tax systems, and tackling illicit financial flows and tax evasion.
And helping developing countries dedicate a greater share of their tax revenues to the systems people need.
The Sevilla Commitment’s call on developed countries to double their aid dedicated to domestic resource mobilization can support this.
Multilateral and national development banks must unite to finance major investments.
This includes tripling the lending capacity of Multilateral Development Banks — and rechanneling Special Drawing Rights that can unlock lending capacity and help developing countries boost investment.
We also need innovative financing solutions to unlock private capital.
Solutions that mitigate currency risks;
That combine public and private finance more effectively, and ensure the risks and rewards of development projects are shared by both the public and private sectors;
And that ensure financial regulations assess risk appropriately and support investments in frontier markets.
Second — we must fix the global debt system which is unsustainable, unfair and unaffordable.
With annual debt service at $1.4 trillion, countries need — and deserve — a system that lowers borrowing costs, enables fair and timely debt-restructuring, and prevents debt crises in the first place.
The Sevilla Commitment lays the groundwork:
By creating a single debt registry for transparency, and promoting responsible lending and borrowing;
By lowering the cost of capital through debt swaps and debt management support;
And through debt service pauses in times of emergency.
And third — we must increase the participation of developing countries in the institutions of the global financial architecture. The present major shareholders have a role to play recognizing the importance of correcting injustices and adapting to a changing world.
A new borrowers forum will give voice to borrowers for fairer debt resolution and can foster transparency, shared learning and coordinated debt action.
And we need a fairer global tax system shaped by all, not just a few.
Excellencies, ladies and gentlemen,
This conference is not about charity.
It’s about restoring justice and lives of dignity.
This conference is not about money.
It’s about investing in the future we want to build, together.
Thank you all for being part of this important and ambitious effort”.
Opening remarks by António Guterres, Secretary-General of the United Nations, at the Opening of the 4th International Conference on Financing for Development FFD4 (Sevilla, Spain).
“Your Majesties,
Excellencies, ladies and gentlemen,
I thank the Government and people of Spain for welcoming us to Sevilla for this important conference.
For decades, the mission of sustainable development has united countries large and small, developed and developing.
Together, we achieved progress.
Reducing global poverty and hunger.
Saving lives with stronger health care systems.
Getting more children into school.
Expanding opportunities for women and girls.
And strengthening social safety nets.
But today, development and its great enabler — international cooperation — are facing massive headwinds.
We are living in a world where trust is fraying and multilateralism is strained.
A world with a slowing economy, rising trade tensions, and decimated aid budgets.
A world shaken by inequalities, climate chaos and raging conflicts.
The link between peace and development is clear.
Nine of the ten countries with the lowest Human Development Indicators are currently in a state of conflict.
Excellencies,
Financing is the engine of development.
And right now, this engine is sputtering.
As we meet, the 2030 Agenda for Sustainable Development — our global promise to transform our world for a better, fairer future — is in danger.
Two-thirds of the Sustainable Development Goals targets are lagging.
Achieving them requires an investment of more than $4 trillion a year.
But this is not just a crisis of numbers.
It’s a crisis of people.
Of families going hungry.
Of children going unvaccinated.
Of girls forced to drop out of school.
We are here in Sevilla to change course.
To repair and rev up the engine of development to accelerate investment at the scale and speed required.
And to restore a measure of fairness and justice for all.
Excellencies,
The Sevilla Commitment document is a global promise to fix how the world supports countries as they climb the development ladder.
I see three areas of action.
First — we must get resources flowing. Fast.
Countries must lead by mobilizing domestic resources and investing in areas of greatest impact: schools, health care, social protection, decent work, and renewable energy.
Unlocking these investments requires strengthening tax systems, and tackling illicit financial flows and tax evasion.
And helping developing countries dedicate a greater share of their tax revenues to the systems people need.
The Sevilla Commitment’s call on developed countries to double their aid dedicated to domestic resource mobilization can support this.
Multilateral and national development banks must unite to finance major investments.
This includes tripling the lending capacity of Multilateral Development Banks — and rechanneling Special Drawing Rights that can unlock lending capacity and help developing countries boost investment.
We also need innovative financing solutions to unlock private capital.
Solutions that mitigate currency risks;
That combine public and private finance more effectively, and ensure the risks and rewards of development projects are shared by both the public and private sectors;
And that ensure financial regulations assess risk appropriately and support investments in frontier markets.
Second — we must fix the global debt system which is unsustainable, unfair and unaffordable.
With annual debt service at $1.4 trillion, countries need — and deserve — a system that lowers borrowing costs, enables fair and timely debt-restructuring, and prevents debt crises in the first place.
The Sevilla Commitment lays the groundwork:
By creating a single debt registry for transparency, and promoting responsible lending and borrowing;
By lowering the cost of capital through debt swaps and debt management support;
And through debt service pauses in times of emergency.
And third — we must increase the participation of developing countries in the institutions of the global financial architecture. The present major shareholders have a role to play recognizing the importance of correcting injustices and adapting to a changing world.
A new borrowers forum will give voice to borrowers for fairer debt resolution and can foster transparency, shared learning and coordinated debt action.
And we need a fairer global tax system shaped by all, not just a few.
Excellencies, ladies and gentlemen,
This conference is not about charity.
It’s about restoring justice and lives of dignity.
This conference is not about money.
It’s about investing in the future we want to build, together.
Thank you all for being part of this important and ambitious effort”.
In a significant step towards deepening international development cooperation, the European Investment Bank (EIB) and CAF Development Bank of Latin America and the Caribbean signed a memorandum of understanding today during a high-level meeting with Community of Latin American and Caribbean States (CELAC) finance ministers and financial institutions operating in the Latin America and the Caribbean region, in advance of the Fourth International Conference on Financing for Development (FFD4) held in Seville.
EIB President Nadia Calviño and CAF President Sergio Díaz-Granados formalised the agreement, which aims to enhance institutional collaboration and mobilise financing for high-impact projects across Latin America and the Caribbean. Central to the memorandum of understanding is the shared commitment to promote climate action and environmental sustainability, reflecting both institutions’ priorities and the European Union’s Global Gateway strategy.
From dialogue to strategic partnership
The signing of the memorandum of understanding marks a significant evolution in the relationship between the EIB and CAF, moving from ad hoc coordination to a more structured and strategic form of collaboration. The agreement is designed to turn shared ambitions into practical outcomes by expanding sustainable investments and tackling key development challenges across Latin America and the Caribbean.
The memorandum of understanding outlines a broad framework for cooperation that preserves the independence of each institution while building a foundation for deeper coordination, as it offers a flexible and scalable model for collaboration.
A shared vision for climate and development
The partnership’s central goal is to boost financing for projects aligned with climate action and environmental sustainability, specifically those that contribute to greenhouse gas mitigation, climate resilience, biodiversity preservation and the fight against environmental degradation. The cooperation will also aim to reinforce regional value chains and accelerate the transition to green, inclusive economies.
The memorandum of understanding envisions financial support through multiple instruments, including parallel and joint co-financing, loan guarantees, equity investments, advisory services and knowledge transfer. Both institutions will also explore the mobilisation of EU and Member State grants through platforms such as the Latin America and Caribbean Investment Facility (LACIF).
Looking ahead
The memorandum of understanding is supported by a clear and actionable roadmap that outlines specific steps for implementation and monitoring. Through this agreement, the EIB and CAF demonstrate a strong and unified commitment to promoting sustainable growth across Latin America and the Caribbean.
The partnership reinforces the practical objectives of the Global Gateway strategy, turning vision into investment-driven action. By formalising and expanding their collaboration, both institutions aim to mobilise significant financial resources, close investment gaps and accelerate the region’s transition to a greener and more resilient future.
Towards the CELAC-EU summit in Santa Marta, Colombia
The upcoming CELAC-EU summit in Santa Marta represents a new milestone in the strategic partnership between the European Union and Latin America and the Caribbean. It offers a key opportunity to highlight and give full value to the renewed agreement between the EIB and CAF, showcasing it as a tangible example of joint commitment to sustainable development, climate action and deeper regional integration under the Global Gateway framework.
The Heads of Multilateral Development Banks (MDBs) met today in Paris, hosted by the Council of Europe Development Bank (CEB), which currently chairs the Heads of MDBs Group. The meeting focused on advancing their joint efforts to address development priorities.
Amid rising global uncertainty, the Heads reaffirmed their commitment to working as a system to deliver greater impact and scale, in line with their Viewpoint Note and the recommendations of the G20 Roadmap towards Better, Bigger, and More Effective MDBs. The Roadmap outlines an ambitious vision for MDB reform to better address regional and global challenges, support job creation, and help countries achieve their development aspirations.
The Heads welcomed ongoing efforts to improve the way MDBs work with clients through operational efficiency and enhanced coordination. In 2025 alone, five mutual reliance agreements have been signed, helping streamline the preparation and implementation of co-financed projects across institutions.
Private capital mobilization remains a system-wide priority, with the last joint report of the MDBs reflecting a positive trend in volumes mobilized. To build on this momentum, the Heads reaffirmed their commitment to developing local currency lending and foreign exchange solutions. They also reaffirmed the importance of adequate risk assessment for private sector investment in emerging markets and developing economies; in this context, the valuable contribution of disaggregated statistics on credit risk published through the Global Emerging Markets Risk Database (GEMs) was recognized.
The Heads reiterated their continued commitment to implementing the recommendations of the G20 Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks (CAF). Further reform efforts by MDBs since mid-2024 have increased the additional lending headroom for development projects in all countries of operation, including high-income ones, over the next decade by more than US$250 billion, thus reaching a total of over US$650 billion.
The publication in the coming weeks of the Comparison Report by the MDBs’ Global Risk and Finance Forum (GRaFF) will provide metrics and data relating to MDBs’ financial positions, promoting a better understanding of their financial models and supporting both balance sheet optimization and private sector mobilization.
The Heads also agreed to continue advancing promising initiatives already underway to strengthen system-wide impact. These include: 1) Mission 300, which aims to connect 300 million people in Africa to electricity by 2030 through public and private collaboration; 2) Association of South East Asian Nations (ASEAN) Power Grid, which aims to boost energy security, strengthen resilience, and promote decarbonization for the region’s 670 million people by connecting its electricity systems; and 3) Digital Transformation in Education in Latin America and the Caribbean, which aims to connect 3.5 million students and train over 250,000 teachers.
In addition, MDBs are exploring joint actions to scale up investments in social infrastructure, including health, education, housing, and water and sanitation. Building on structured dialogue led by the CEB, the Heads welcomed progress made through recent cross-MDB consultations and recognized the key role these sectors play in enabling jobs, productivity, and inclusive growth, while noting persistent financing and delivery challenges that constrain impact.
Meeting in advance of the Fourth International Conference on Financing for Development (FfD4), which will take place in Sevilla, Spain, from 30 June to 3 July, MDBs remain committed to working better as a system, in alignment with country-led development priorities and strategies to promote jobs and prosperity. In view of water’s role in human development, MDBs committed to significantly increasing collective support for global water security by 2030, and will launch the first “Joint Annual MDB Water Security Financing Report” at FfD4. Heads noted the importance of the upcoming COP30 in Belem, Brazil, in November 2025.
Today’s meeting in Paris marks a significant step toward effective collaboration and scaled-up collective action for development priorities. MDB reforms are advancing, moving from concept to execution.
With streamlined operations, better risk tools, and growing financial capacity, MDBs are delivering real impact – from expanding energy access and digital education to scaling investment in water security.
PARIS (28 June) – The Heads of Multilateral Development Banks (MDBs) met today in Paris, hosted by the Council of Europe Development Bank (CEB), which currently chairs the Heads of MDBs Group. The meeting focused on advancing their joint efforts to address development priorities.
Amid rising global uncertainty, the Heads reaffirmed their commitment to working as a system to deliver greater impact and scale, in line with their Viewpoint Note and the recommendations of the G20 Roadmap towards Better, Bigger, and More Effective MDBs. The Roadmap outlines an ambitious vision for MDB reform to better address regional and global challenges, support job creation, and help countries achieve their development aspirations.
The Heads welcomed ongoing efforts to improve the way MDBs work with clients through operational efficiency and enhanced coordination. In 2025 alone, five mutual reliance agreements have been signed, helping streamline the preparation and implementation of co-financed projects across institutions.
Private capital mobilization remains a system-wide priority, with the last joint report of the MDBs reflecting a positive trend in volumes mobilized. To build on this momentum, the Heads reaffirmed their commitment to developing local currency lending and foreign exchange solutions. They also reaffirmed the importance of adequate risk assessment for private sector investment in emerging markets and developing economies; in this context, the valuable contribution of disaggregated statistics on credit risk published through the Global Emerging Markets Risk Database (GEMs) was recognized.
The Heads reiterated their continued commitment to implementing the recommendations of the G20 Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks (CAF). Further reform efforts by MDBs since mid-2024 have increased the additional lending headroom for development projects in all countries of operation, including high-income ones, over the next decade by more than US$250 billion, thus reaching a total of over US$650 billion.
The publication in the coming weeks of the Comparison Report by the MDBs’ Global Risk and Finance Forum (GRaFF) will provide metrics and data relating to MDBs’ financial positions, promoting a better understanding of their financial models and supporting both balance sheet optimization and private sector mobilization.
The Heads also agreed to continue advancing promising initiatives already underway to strengthen system-wide impact. These include: 1) Mission 300, which aims to connect 300 million people in Africa to electricity by 2030 through public and private collaboration; 2) Association of South East Asian Nations (ASEAN) Power Grid, which aims to boost energy security, strengthen resilience, and promote decarbonization for the region’s 670 million people by connecting its electricity systems; and 3) Digital Transformation in Education in Latin America and the Caribbean, which aims to connect 3.5 million students and train over 250,000 teachers.
In addition, MDBs are exploring joint actions to scale up investments in social infrastructure, including health, education, housing, and water and sanitation. Building on structured dialogue led by the CEB, the Heads welcomed progress made through recent cross-MDB consultations and recognized the key role these sectors play in enabling jobs, productivity, and inclusive growth, while noting persistent financing and delivery challenges that constrain impact.
Meeting in advance of the Fourth International Conference on Financing for Development (FfD4), which will take place in Sevilla, Spain, from 30 June to 3 July, MDBs remain committed to working better as a system, in alignment with country-led development priorities and strategies to promote jobs and prosperity. In view of water’s role in human development, MDBs committed to significantly increasing collective support for global water security by 2030, and will launch the first “Joint Annual MDB Water Security Financing Report” at FfD4. Heads noted the importance of the upcoming COP30 in Belem, Brazil, in November 2025.
Today’s meeting in Paris marks a significant step toward effective collaboration and scaled-up collective action for development priorities. MDB reforms are advancing, moving from concept to execution.
With streamlined operations, better risk tools, and growing financial capacity, MDBs are delivering real impact – from expanding energy access and digital education to scaling investment in water security.
Source: Hong Kong Government special administrative region
The Government announced today (June 30) its financial results for the two months ended May 31, 2025.
Expenditure and revenue from April to May 2025 amounted to HK$129.7 billion and HK$55.9 billion respectively, resulting in a deficit of HK$78.4 billion after taking into account HK$15.5 billion received from issuance of Government Bonds and repayment of HK$20.1 billion principal on Government Bonds.
A Government spokesperson said that the deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes, are mostly received towards the end of a financial year.
The fiscal reserves stood at HK$575.9 billion as at May 31, 2025.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
Month ended May 31, 2025 HK$ million
Two months ended May 31, 2025 HK$ million
Revenue
17,448.6
55,906.5
Expenditure
(66,328.1)
(129,774.6)
Deficit before issuance and repayment of Government Bonds
(48,879.5)
(73,868.1)
Proceeds received from issuance of Government Bonds
9,435.9
15,534.8
Repayment of Government Bonds*
(20,070.1)
(20,120.5)
Deficit after issuance and repayment of Government Bonds
(59,513.7)
(78,453.8)
Financing
Domestic
Banking Sector (Note 2)
59,210.2
75,933.7
Non-Banking Sector
303.5
2,520.1
External
–
–
Total
59,513.7
78,453.8
* Being repayment of principal on Government Bonds and does not include the associated interest and other expenses.
Government Debts as at May 31, 2025 (Note 3) HK$298,332 million Debts Guaranteed by Government as at May 31, 2025 (Note 4) HK$123,199 million
TABLE 2. FISCAL RESERVES
Month ended May 31, 2025 HK$ million
Two months ended May 31, 2025 HK$ million
Fiscal Reserves at start of period
635,376.7
654,316.8
Consolidated Deficit after issuance and repayment of Government Bonds
(59,513.7)
(78,453.8)
Fiscal Reserves at end of period (Note 5)
575,863.0
575,863.0
Notes:
1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at May 31, 2025, was HK$216,896 million.
2. Includes transactions with the Exchange Fund and resident banks.
3. The Government Debts, with proceeds credited to the Capital Works Reserve Fund, comprise:
(i) the Green Bonds (equivalent to HK$177,761 million as at May 31, 2025) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$9,950 million with maturity from January 2026 to January 2053), euros (4,580 million euros with maturity from February 2026 to November 2041), Renminbi (RMB34,000 million with maturity from June 2025 to July 2054) and Hong Kong dollars (HK$22,000 million with maturity from February 2026 to October 2026);
(ii) the Infrastructure Bonds (equivalent to HK$65,900 million as at May 31, 2025) issued under the Infrastructure Bond Programme. They were denominated in Renminbi (RMB19,000 million with maturity from December 2025 to May 2035) and Hong Kong dollars (HK$45,230 million with maturity from November 2025 to March 2045); and
(iii) the Silver Bonds with nominal value of HK$54,671 million (with maturity in October 2027 and may be redeemed before maturity upon request from bond holders) issued under the Infrastructure Bond Programme.
They do not include the outstanding bonds with nominal value of HK$168,090 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,841 million as at May 31, 2025) issued under the Government Bond Programme with proceeds credited to the Bond Fund. Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$96,090 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$66,959 million will mature within the period from June 2025 to May 2026 and the rest within the period from June 2026 to May 2042.
4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012, and the Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade, the Loan Guarantee Scheme for Battery Electric Taxis and the Loan Guarantee Scheme for Travel Sector launched in 2023.
5. Includes HK$250,041 million, being the balance of the Land Fund held in the name of “Future Fund”, for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.