Public Development Banks

Introducing a new reference book co-authored by AFD, BearingPoint and UNDESA on the vital role of public development banks.

Development banks are key players in fostering economic growth and sustainable development. They do this by financing long-term projects with significant developmental impacts that are underserved by the private sector, and by providing countercyclical support during crises. These institutions have received renewed attention from policymakers, and several new ones have been established over the past two decades.

This book consolidates information on public development banks, exploring the characteristics that support their effectiveness and their role in financing sustainable development. It emphasizes the importance of maintaining profitability, strong governance, risk management, effective monitoring and evaluation systems, and cooperation to maximize impact. Development banks address market failures and catalyze private sector finance, generating “additionality” through impactful projects.

The book builds on the Finance in Common System (FiCS), a global initiative designed to promote stronger collaboration among development banks to boost and align financial flows in support of the SDGs.

Discover more about this reference book. It is available for purchase on various platforms.