development banks

1. DEVELOPMENT
S BANKS
• Prepared By
• Osama Bin Shahid
• Fa22-RMS-002

2. Definition
national or regional financial
institution
designed to provide medium- and
long-term capital for productive
investment,
often accompanied by technical
assistance, in poor countries

3. Purpose
TO FIND FUNDS TO MEET THE
SUSTAINABLE DEVELOPMENT
GOALS
INCREASING CAPITAL
FORMATION THAT CAN
CONTRIBUTE TOWARDS THE
GROWTH OF ECONOMIC
DEVELOPMENT.
ENSURE THAT THE INVESTORS
AND ENTREPRENEURS ARE
INDUCED BY CAREFUL
ALLOCATION OF MATERIAL
AND HUMAN RESOURCES.
DEVELOPMENT ACTIVITIES ARE
UNDERTAKEN.
ENSURING THAT INDUSTRIAL
UNITS ARE PROMOTED IN
ORDER TO FILL THE GAPS IN
THE INDUSTRY STRUCTURE.
HEALTHY PROJECTS SHOULD
HAVE ENOUGH FINANCIAL AND
TECHNICAL SERVICES IN ORDER
TO MAKE THE PROJECTS
WORK.

4. Functions
For their financial and social development, the
increment advances and investments to its creating
partner nations.
They provide specialized assistance for the
arranging and the usage of improvement tasks and
programs and for financial advisory services.
For development, they promote and encourages
public and private capital.
They respond to demands for help with planning
development approaches and plans of its
expanding nations

5. Role
DFIs can be extremely important in financing commercial and
public sector initiatives in developing nations.
DFIs frequently lend money to the private sector to support
initiatives that advance development and aid businesses in
making investments, particularly in nations with a variety of
market constraints.
Some development banks incorporate criteria for impact
investment and socially conscious investing in their
mandates. Governments frequently use development banks
as a component of their programs for international aid or
economic growth

6. Establishme
nt
Development banks are
established under a special Act
passed by the government.
Bratton Wood Agreement

7. Source of
Income
Development banks raise money in both
domestic and global financial markets,
and governments also provide their pay
in capital.
Additionally, the private sector
frequently contributes to these banks'
loans, which is particularly beneficial for
governments dealing with tight budgets
during and after economic crises.

8. Fundraising strategy
DEVELOPMENT BANKS
OBTAIN THEIR FUNDING
FROM THE
SALE OF SECURITIES, BORROWING, AND GRANTS.

9. Interest
Rate
Varies from country to
country and bank to bank.
Very low interest charges
Other financial and national
economic conditions applied

10. Examples
Asian Development Bank
Industrial Development Bank
IMF
World Bank
Islamic Development Bank

11. THE END!