Digital payments and financial inclusion accelerated powerfully over the past couple of years, and in 2023 market conditions — like rising inflation, mass layoffs in tech, stagnating venture capital investment, declining GDP growth and the decline of crypto — will pose challenging circumstances for all fintech players.
As the leading fixed-income debt instrument, green bonds have also paved the way for the appearance of other thematic-labelled bonds. New labels and formats contributing to long-term environmental and social projects have arisen to further expand the labelled bond market, which is a clear signal that issuers and investors are highly committed to a greener, fairer, and more sustainable world.
For financial institutions, measuring and managing market and credit risk is a relatively straightforward process done through established tools, models and methodologies. However, accurately identifying and measuring the complex risks directly associated with climate change (and other important events) is a significantly more challenging task.