About regional development banks.

1. REGIONAL
DEVELOPMENT
BANK

2. history
The REGIONAL DEVELOPMENT were first established in 1959 with 56 countries, the
first regional bank developed was for Latin America and
Caribbean countries later it expanded for the worldwide coverage which cover
areas regionally and Established are as follows :-
1. InterAmerican Development bank - 1959 – Washington
2. Central American Bank For Economic Integration - 1960 – Tegucigapla
3. African Development Bank - 1964 – Abidjan
4. Islamic Development Bank Group – 1973 – Jeddah
5. Asian Development Bank – 1966 – Manila
6. Development Bank Of Latin America – 1970 – Caracas
7. European Bank Of Reconstruction and Development(EBRD) – 1991 – London
THE REGIONAL DEVELOPMENT FOR INDIA IS CALLED THE ADB aka Asian
development Bank situated in manila.

3. The Philippines capital of Manila was chosen to host the new institution,
which opened on 19 December 1966, with 31 members that came together
to serve a predominantly agricultural region. Takeshi Watanabe was ADB's
first President.

4. INTRODUCTION
The regional development banks consist of several regional institutions that
have functions similar to the World Bank group's activities, but with
particular focus on a specific region. Shareholders usually consist of the
regional countries plus the major donor countries. The best-known of these
regional banks cover regions that roughly correspond to United
Nations regional groupings, including the Inter-American Development Bank,
the Asian Development Bank; the African Development Bank; the Central
American Bank for Economic Integration; and the European Bank for
Reconstruction and Development. The Islamic Development Bank is among
the leading multilateral development banks. IsDB is the only multilateral
development bank after the World Bank that is global in terms of its
membership. 56 member countries of IsDB are spread over Asia, Africa,
Europe and Latin America

5. AREASOF WORK
Infrastructure
• Energy
• Information & communications and technology
• Transport
• Urban development
• water

6. OTHER FOCUS AREAS
• Agriculture & food security
• Climate change & disaster management
• Education
• Environment
• Finance sector
• Gender& development
• Governance & public management
• Health
• PPP
• Poverty & Social development
• Sustainable development

8. •ADB is regional development bank conceived in 19December 1966.
•Current president of ADB is Taketkio Nakao and its HQ is located in Manila ,
Philippines.
•ADB owned 67 member country , 48 of which are from Asia and pacific region.
•ADB focused much of its assistance on food production and rural development.
•The Asian Development Bank aims for an Asia and Pacific free from poverty. Its
mission is to help developing member countries reduce poverty and improve the
quality of life of their people.
•As a multilateral development finance institution, ADB provides: Loans technical
assistance Grants.
Asian DEVELOPMENTBANKS

9. ROLE OF RDB’S ININDIA
•The major role of ADB for foreign trade is to provide finance to the
enterprises .
• To provide better infrastructure facilities in the nation .
• Providing consultancy to business.
•So for overcoming the finance problems ADB has many banks which
provide finance to Exporter or importer easily.

10. Some Adb participating bank in India:-
• State Bank of India
• IDBI
• BNP Paribas (Mumbai Branch)
• Credit Agricole Corporate &
Investment Bank (Mumbai Branch)
• DBS Bank Ltd (Mumbai branch)
• Deutsche Bank (Bangalore Branch)

12. These banks are connected to the ADB among with 200+ banks from than 53 Asian
countries. These banks are joined under the program of ADB called TRADE
FINANCE PROGRAM.
ADB's Trade Finance Program (TFP) fills market gaps for trade finance by providing
guarantees and loans to banks to support trade.
Backed by its AAA credit rating, ADB’s TFP works with over 200 partner banks to
provide companies with the financial support they need to engage in import and
export activities in Asia’s most challenging markets. With dedicated trade finance
specialists and a response time of 24 hours, the TFP has established itself as a key
player in the international trade community, providing fast, reliable, and responsive
trade finance support to fill market gaps.

13. MAJOR FUNCTIONSOF ADB
•Promote investment in the ECAFE region of Public and Private capital for
Development purpose.
• Utilise the available Resources for financing development , giving priority
to those regional and sub-regional as well as national projects and
programmes which will contribute most effectively to the harmonious
economic growth of the region as a whole.
• Providing technical assistance for preparations , financing and execution of
Development projects and programmes , including the formulation of
Specific proposals .
• To co-operate with the UN and its organs and subsidiary bodies , includings
, in particular, ECAFE and with public international organisations and other
International institution.(ECONOMIC COMMISION FOR ASIA AND FAR EAST)

14. Features
The Development Banks have some following features such as :-
•To provide working capitals to the importer and the exporter
•To fill the gap between the Commercial banks and national banks
•Providing finance to SME’s (Small, Medium-sized enterprise)
•Provide assistance to Economy with low credit score.
•Loans on low interest , reducing poverty.

15. Interest differencebetween normal finance vs
foreigntrade finance
BANKS Interest for domestic Interest for Foreign trade
1. State bank of India
2. IDBI
3. Bank of India
4. DBS Bank
11.20%-16.30% (12 to 48
Months)
2%-4.5%(30 days to 180
days
9.45%-9.55% 5.50%
13% (12 to 60 months
13% 1/8%

16. IMPORTANCE
 The Development banks works as a bridge between the national bank and the
Commercial banks in India .
 The development banks provide loans with less interest than the other banks.
 The developments banks provide assistance to banks which are situated in low
economy Regions .
 Providing loans to medium and small enterprises including EOU.

17. RECENTWORKS
1. ADB provides $40million to Armenia for fiscal and financial market reform
2. ADB sells $1.5 billion 10 – Global benchmark bonds
3. ADB issues $169 million or 11 billion dollar , from a new issue of offshore rupee-
linked bond.
4. ADB approve $200 million dollar for srilanka’s Renewable energy park (100MW).

18. ACHIEVEMENTS
SOME ACHIEVEMENTS OF ADB :-
• Quick responses to natural disasters, especially the Nepal earthquake and the Vanuatu
cyclone.
• Support to countries suffering from lower commodity prices and volatility in financial
markets such as Kazakhstan and Mongolia
• policy-based lending and results-based lending to China,
• Loan grant to public sector of 16.6 billion and 2.6billion to private sector and 10 billion to
co-financing.
• Reduced poverty in Yemen after the civil war , Bangladesh , Cambodia and other 3rd world
countries .
• Promoting education in conservative countries.
• Better health facilities in last decade in African countries (NOT SOUTH AFRICA).

19. CHALLANGES
• Safe water is still not to the 60% people of the members countries.
• Improved sanitation still not been reached to 70% of population.
• Still majority of the small enterprises of the members countries don’t
have facility of credit from bank due to unawareness.
• Out of100 children 40 dies before they could reach to the age of 15 due to
high mortality rate , infant mortality is much higher than this.
• Half of the undernourished children lives in Asia.
• Rising inflation has a very adverse affect on the whole Asian economy.
• The per person income has a very high indifference in whole Asian continent.