IDA's Borrowing Programs
CAPITAL ADEQUACY FRAMEWORK
CAPITAL ADEQUACY
QUALITY LOAN
PORTFOLIO
PRUDENT RISK
MANAGEMENT
LIQUIDITY
STRENGTH OF MEMBER
SUPPORT
18
USD billions
200
Risk-adjusted Capital
(as of June 30, 2023)
180
160
DSC
(24%)
140
Buffer $19
120
100
Actual
$191
80
60
Minimum
60
$126
40
40
20
20
0
•
•
•
To protect IDA's financial strength and triple-A rating, IDA uses
"economic capital" framework.
IDA conservatively estimates all potential losses for all of
IDA's activities and assets. The amount of potential losses
represents the minimum capital required to support the
current portfolio.
IDA then holds actual capital above that minimum plus a
"conservation buffer".
The strength of IDA's capital adequacy is measured by the
Deployable Strategic Capital (DSC) ratio, representing the
capital available over and above capital needed to support the
current portfolio plus a buffer.
IDA
International Development
Association
WORLD BANK GROUPView entire presentation