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Development finance institution
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<h2 id="mandate">Mandate</h2> <p>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.<a class="footnote-ref" id="fnref:2" href="#fn:2"><sup>2</sup></a> </p><p>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.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> </p> <h3>Climate financing</h3> <p>As of November 2020, development banks and private finance had not reached the US$100 billion per year investment of <a href="/facts/Climate_finance/V5MQTmmE">climate financing</a> stipulated in the UN climate negotiations for 2020.<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> However, in the face of the <a href="/facts/Economic_impact_of_the_COVID-19_pandemic/7n3b6gSJ">COVID-19 pandemic's economic downturn</a>, 450 development banks pledged to fund a "<a href="/facts/Green_recovery/HyTavuoQ">Green recovery</a>" in developing countries.<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a> </p> <h2 id="typology">Typology</h2> <p>Development banks include: </p> <ul><li><a href="/facts/Community_development_bank/y4Q4wnSH">Community development banks</a> which fund low-income areas in the United States</li> <li><a href="/facts/Land_development_bank/WFAjHVv2">Land development banks</a> which provide financing to develop agriculture in India</li> <li><a href="/facts/National_development_bank/Ls45qUlq">National development banks</a> are government-owned financial institution that provides financing for economic development.</li> <li><a href="/facts/International_financial_institutions/VKeffxUE">International financial institutions</a> conducting development-oriented finance on a bilateral or multilateral basis</li> <li><a href="/facts/Multilateral_development_bank/VKeffxUE">Multilateral development bank</a> are development banks set up by a group of countries and often operate under international laws.</li></ul> <h2 id="list-of-development-finance-institutions-incomplete">List of Development Finance Institutions (incomplete)</h2> <ul><li><a href="/facts/African_Development_Bank/S14GV19R">African Development Bank</a> (AfDB)</li> <li><a href="/facts/Asian_Development_Bank/BqGTRkyB">Asian Development Bank</a> (ADB)</li> <li><a href="/facts/Asian_Infrastructure_Investment_Bank/UnYz3cln">Asian Infrastructure Investment Bank</a> (AIIB)</li> <li><a href="/facts/Bank_of_the_South/haxCIetM">Bank of the South</a></li> <li><a href="/facts/Black_Sea_Trade_and_Development_Bank/Qgh0UtNW">Black Sea Trade and Development Bank</a></li> <li><a href="/facts/Caribbean_Development_Bank/dSFTBaS4">Caribbean Development Bank</a></li> <li><a href="/facts/Central_American_Bank_for_Economic_Integration/q6SC6MjH">Central American Bank for Economic Integration</a></li> <li><a href="/facts/Council_of_Europe_Development_Bank/5pvCg7Fl">Council of Europe Development Bank</a></li> <li><a href="/facts/Eurasian_Development_Bank/asyrIBbS">Eurasian Development Bank</a></li> <li><a href="/facts/European_Bank_for_Reconstruction_and_Development/dXGW7vHH">European Bank for Reconstruction and Development</a></li> <li><a href="/facts/European_Investment_Bank/uXIa0lkR">European Investment Bank</a></li> <li><a href="/facts/Inter-American_Development_Bank/QMQJX6Rh">Inter-American Development Bank</a></li> <li><a href="/facts/Islamic_Development_Bank/avSFtM6L">Islamic Development Bank</a></li> <li><a href="/facts/New_Development_Bank/VyMyAzg3">New Development Bank</a></li> <li><a href="/facts/World_Bank/hIH9uUb2">World Bank</a></li></ul> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/International_Financial_Institution/VKeffxUE">International Financial Institution</a></li> <li><a href="/facts/Economic_development/4KRrMBaM">Economic development</a></li> <li><a href="/facts/Development_aid/0FQxWKfK">Development aid</a></li> <li><a href="/facts/Village_banking/NVBnz71d">Village banking</a></li></ul> <h2 id="external-links">External links</h2> <ul><li><a href="https://www.wfdfi.org/">World Federation of Development Financing Institutions (WFDFI)</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economic Development, Washington, DC: CFED, July 2006 <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>Dirk Willem te Velde and Michael Warner (2007) Use of subsidies by Development Finance Institutions in the infrastructure sector Archived 2010-02-06 at the Wayback Machine Overseas Development Institute <a href="http://www.odi.org.uk/resources/details.asp?id=433&title=use-subsidies-development-finance-institutions-infrastructure-sector" target="_blank">http://www.odi.org.uk/resources/details.asp?id=433&title=use-subsidies-development-finance-institutions-infrastructure-sector</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Dirk Willem te Velde and Michael Warner (2007) Use of subsidies by Development Finance Institutions in the infrastructure sector Archived 2010-02-06 at the Wayback Machine Overseas Development Institute <a href="http://www.odi.org.uk/resources/details.asp?id=433&title=use-subsidies-development-finance-institutions-infrastructure-sector" target="_blank">http://www.odi.org.uk/resources/details.asp?id=433&title=use-subsidies-development-finance-institutions-infrastructure-sector</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>"Banks around world in joint pledge on 'green recovery' after Covid". the Guardian. 2020-11-11. Retrieved 2020-11-12. <a href="https://www.theguardian.com/global-development/2020/nov/11/banks-around-world-in-joint-pledge-on-green-recovery-after-covid" target="_blank">https://www.theguardian.com/global-development/2020/nov/11/banks-around-world-in-joint-pledge-on-green-recovery-after-covid</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>"Banks around world in joint pledge on 'green recovery' after Covid". the Guardian. 2020-11-11. Retrieved 2020-11-12. <a href="https://www.theguardian.com/global-development/2020/nov/11/banks-around-world-in-joint-pledge-on-green-recovery-after-covid" target="_blank">https://www.theguardian.com/global-development/2020/nov/11/banks-around-world-in-joint-pledge-on-green-recovery-after-covid</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> </ol>