Development finance institution

Development financial institution (DFI), also known as a Development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis.

Top 10 clean energy financing institutions 2014

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 company that provides loans for projects that a government or nonprofit wants to encourage for non commercial reasons. They can be at a local, national or international level. DFIs include multilateral development banks, national development banks, bilateral development banks, microfinance institutions, community development financial institution and revolving loan funds.[1]

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, 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:

See also

References


🔥 Top keywords: Main PageSpecial:SearchPage 3Wikipedia:Featured picturesHouse of the DragonUEFA Euro 2024Bryson DeChambeauJuneteenthInside Out 2Eid al-AdhaCleopatraDeaths in 2024Merrily We Roll Along (musical)Jonathan GroffJude Bellingham.xxx77th Tony AwardsBridgertonGary PlauchéKylian MbappéDaniel RadcliffeUEFA European Championship2024 ICC Men's T20 World CupUnit 731The Boys (TV series)Rory McIlroyN'Golo KantéUEFA Euro 2020YouTubeRomelu LukakuOpinion polling for the 2024 United Kingdom general electionThe Boys season 4Romania national football teamNicola CoughlanStereophonic (play)Gene WilderErin DarkeAntoine GriezmannProject 2025