ignazio visco : joint ministerial committee of the boards of governors of the bank and the fund on the transfer of real resources to developing countries statement by mr ignazio visco, governor of the bank of italy and governor of the constituency of albania, greece, italy, malta, portugal, san marino and timor - leste, at the 105th meeting of the development committee ( joint ministerial committee of the boards of governors of the bank and the fund on the transfer of real resources to developing countries ), washington dc, 22 april 2022. * * * today's meeting falls at a tragic time. our first thought goes to the ukrainian people, forced to abandon their regular lives, their homes and their land, their families and friends. we grieve the tragic loss of life and massive human suffering that have accompanied russian military aggression against ukraine, which threatens the rulesbased international economic and financial system. we commend the world bank group ( wbg ) for its swift intervention in support of the ukrainian government and people, using its convening power to gather the resources of the international community. we appreciate the wbg's efforts to work closely with the un and other key partners in supporting those fleeing the war. the shocking events in ukraine are having huge, negative impacts on the world economy, which had just started to recover from the upheavals of the covid - 19 pandemic. it will take time to assess the war's human, moral, and economic cost. the background paper for the development committee confirms our fears, presenting updated assessments of the immediate economic and social impact, the manifold medium - and long - term effects, and the acute risks for the poor and most vulnerable. shortages of key staples, extraordinary increases in energy and food prices, mounting trade costs, and disruptions in supply chains are already putting developing countriesespecially the poorest - under enormous pressures. we agree that the wbg, in collaboration with other relevant multilateral institutions, must promptly address food insecurity in africa, central asia, and the remaining least developed economies. this should include actions to increase food supply and avoid export restrictions, also through the support to regional integration and transportation infrastructure. creating jobs and helping the private sector develop are necessary complementary objectives. history demonstrates that abrupt food price increases often trigger economic setbacks and political instability, which in turn augment fragility, poverty, conflict, and violence. we acknowledge the wbg staff

notional value of usd 142. 7 trillion, or around 28 % of otc derivatives traded, to usd 268 trillion after migration to the clearing requirement, or 53 % of otc derivatives traded. all these figures quite forcefully demonstrate the increasing systemic importance of ccps. now, why is there such a push for central clearing and what does that mean from a systemic risk perspective? central clearing : benefits and side effects i see four main benefits that explain the market - driven and regulatory push for central clearing [ slide 4 ]. bis central bankers ’ speeches first, cpps overcome information asymmetries that typically exist in marketplaces, especially markets with a big number of heterogeneous players. ccps allow participants to trade with one a single counterparty ( the ccp ), which greatly facilitates the due diligence efforts and risk management burden that counterparties normally face. second, ccps offer state - of - the - art margining and risk management methods that do not exist to the same extent in the bilateral world, which either relies on standardised margining methods that are not very risk - sensitive or on bank - internal margining models that may not necessarily meet the same high standards that ccps are required to meet. third, by introducing default and clearing funds, ccps are able to mutualise losses in a transparent and predictable way, which makes it easier for financial markets to handle huge losses and liquidity shortfalls that may occur in catastrophic events. by carefully designing their risk management framework, ccps can help to ensure that losses fall predictably on those who are better able to cope with them. more generally, central clearing introduces ex ante transparency and therefore certainty, provided that the rules are clear and well understood by market participants. finally, and most importantly, central clearing allows for the multilateral netting of exposures so that a given level of risk protection can be achieved with a smaller amount of collateral, or vice versa, a given amount of collateral can achieve a higher level of risk protection. notwithstanding the numerous benefits of central clearing, the rise of central clearing may be associated with a number of side effects [ slide 5 ]. first, risk concentration within ccps will grow, both nationally and internationally. ccps are increasingly turning into institutions of unprecedented systemic importance. their failure could lead to very serious systemic disruptions, which is why not only sound risk management, but also an effective recovery and resolution regime for ccps is key. second, a growing number of