Development finance institution
Development finance institution (DFI), also known as a Development bank, is a
DFIs are often established and owned by governments or nonprofit organizations to finance projects that would otherwise not be able to get financing from commercial lenders.
They are often structured as a
Mandate
DFIs can play a crucial role in financing private and public sector investments in developing countries, in the form of higher risk loans, equity positions, and guarantees.[2]
DFIs often provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.[2]
Climate financing
As of November 2020[update], development banks and private finance had not reached the US$100 billion per year investment of climate financing stipulated in the UN climate negotiations for 2020.[3] However, in the face of the COVID-19 pandemic's economic downturn, 450 development banks pledged to fund a "Green recovery" in developing countries.[3]
Typology
Development banks include:
- Community development banks which fund low-income areas in the United States
- Land development banks which provide financing to develop agriculture in India
- National development banksare government-owned financial institution that provides financing for economic development.
- International financial institutions conducting development-oriented finance on a bilateral or multilateral basis
- Multilateral development bankare development banks set up by a group of countries and often operate under international laws.
List of Development Finance Institutions (incomplete)
- African Development Bank (AfDB)
- Asian Development Bank (ADB)
- Asian Infrastructure Investment Bank (AIIB)
- Bank of the South
- Black Sea Trade and Development Bank
- Caribbean Development Bank
- Central American Bank for Economic Integration
- Council of Europe Development Bank
- Development Bank of Latin America and the Caribbean(CAF)
- Eurasian Development Bank
- European Bank for Reconstruction and Development
- European Investment Bank
- Inter-American Development Bank
- Islamic Development Bank
- New Development Bank
- World Bank
See also
- International Financial Institution
- Economic development
- Development aid
- Village banking
References
- ^ Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economic Development, Washington, DC: CFED, July 2006
- ^ Overseas Development Institute
- ^ a b "Banks around world in joint pledge on 'green recovery' after Covid". the Guardian. 2020-11-11. Retrieved 2020-11-12.
External links
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