World Bank and ISDA Partner to Boost Emerging Market Finance

Nineteen of 44 emerging economies still restrict derivatives access, leaving businesses vulnerable to currency and interest rate volatility. To bridge this gap, the World Bank Group and the International Swaps and Derivatives Association have signed a formal agreement to overhaul regulatory frameworks and bolster financial stability in developing nations.

Editorial·July 16, 2026·reads: 816

World Bank and ISDA Partner to Boost Emerging Market Finance

The partnership integrates the IBRD, IDA, and IFC with ISDA’s technical expertise to dismantle barriers preventing local market growth. By fostering transparent legal systems and promoting standardized documentation, the initiative aims to provide firms with the tools necessary to hedge against price fluctuations. This institutional support is designed to unlock local currency financing, encouraging long-term capital investment and job creation in previously constrained regions.

Policy efforts will center on capacity-building programs, including specialized training and joint research into market protections like close-out netting. World Bank Vice President Jorge Familiar emphasized that these measures are critical for sovereign borrowing and long-term planning. ISDA CEO Scott O’Malia noted that establishing robust regulatory foundations is the only way to ensure businesses can manage risk with confidence, ultimately securing broader economic resilience.