Development banks are specialized financial institutions that provide long-term finance for development projects and activities in developing countries. These banks are usually set up and funded by national governments, international organizations, or a combination of both.
Development banks aim to promote economic development and social progress in their target countries by providing financing for projects that are critical to economic growth, such as infrastructure development, agriculture, and education. They also provide technical assistance and advisory services to help promote economic and social development.
Development banks may provide financing through various instruments, such as loans, guarantees, and equity investments. They also often partner with other financial institutions and organizations to leverage their resources and reach more borrowers.
Examples of development banks include the World Bank, the Asian Development Bank, the African Development Bank, and the Inter-American Development Bank. These institutions operate at the international level and provide financing and support to developing countries around the world. There are also national-level development banks that operate within specific countries and regions, providing finance and support for local development projects.
