Abstract

This article provides a focused overview of development banking with an eye toward the challenges that development banks will face in the future. The economic basis of development banking is market gaps due to information asymmetries, positive externalities, and imperfect competition in the financial system. Recently, there has been a growing emphasis on the role of development banks in transformation in the context of major structural breaks, highlighting the importance of their financial sustainability and good management practices. Based on the experience of countercyclical policies during the crisis, addressing socioeconomic challenges such as climate change, reviving industrial policy in the face of rapid technological change, and increasing protectionism, the role of development banks is likely to be strengthened in the future.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.