IDEAS home Printed from https://ideas.repec.org/a/taf/deveza/v26y2009i5p677-694.html
   My bibliography  Save this article

A macro-framework for successful development banks

Author

Listed:
  • Janine Thorne
  • Charlotte du Toit

Abstract

The large-scale failures of development banks in the 1970s and 1980s meant that they all but disappeared from the development agenda. However, there are still a large number of development banks worldwide that operate with various degrees of success. Some governments are also looking to re-establish such banks to address the shortage of finance for higher-risk market segments. To avoid a repeat of the earlier failures, government policy needs to be informed by an objective framework for the success of these banks. This article, based on economic theory and informed by case studies, outlines such a framework. It addresses the following six dimensions of these banks: enabling environment, mandate, regulation and supervision, governance and management, financial sustainability and performance assessment. Development banking remains a risky initiative but, managed appropriately, and using this framework, it can help achieve development objectives.

Suggested Citation

  • Janine Thorne & Charlotte du Toit, 2009. "A macro-framework for successful development banks," Development Southern Africa, Taylor & Francis Journals, vol. 26(5), pages 677-694.
    • Handle: RePEc:taf:deveza:v:26:y:2009:i:5:p:677-694
    DOI: 10.1080/03768350903303183
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/03768350903303183
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/03768350903303183?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shirley, Mary M & Xu, Lixin Colin, 2001. "Empirical Effects of Performance Contracts: Evidence from China," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(1), pages 168-200, April.
    2. Yaron, J., 1992. "Assessing Development Finance Institutions; A Public Interest Analysis," World Bank - Discussion Papers 174, World Bank.
    3. Nellis, J.R., 1989. "Contract Plans And Public Enterprise Performance," World Bank - Discussion Papers 48, World Bank.
    4. -, 2002. "Growth with stability: financing for development in the new international context," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2319 edited by Eclac.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thorsten Beck & Samuel Munzele Maimbo & Issa Faye & Thouraya Triki, 2011. "Financing Africa : Through the Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 2355, December.
    2. Régis MARODON, 2020. "Les banques de développement peuvent-elles relever le défi du développement durable ?," Working Paper 8eb18544-95bf-404e-bbfe-e, Agence française de développement.
    3. World Bank, 2013. "Mongolia : Improving Public Investments to Meet the Challenge of Scaling Up Infrastructure," World Bank Publications - Reports 13256, The World Bank Group.
    4. Maria Alejandra RIAÑO & Jihane BOUTAYBI & Damien BARCHICHE & Sébastien TREYER, 2020. "Accélérer l'alignement des banques publiques de développement avec l'Agenda 2030 pour le développement durable," Working Paper 8ae70006-df09-4050-910f-c, Agence française de développement.
    5. Riham Shendy & Zachary Kaplan & Peter Mousley, 2011. "Toward Better Infrastructure : Conditions, Constraints, and Opportunities in Financing Public-Private Partnerships in Select African Countries," World Bank Publications - Books, The World Bank Group, number 2331, December.
    6. Fatih Kayhan & Onur Özdemir, 2022. "The Lending Behavior of Investment and Development Banks in Turkiye: Evidence from Quantile Regression Approach," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-1), pages 239-267, June.
    7. Maria Alejandra RIAÑO & Jihane BOUTAYBI & Damien BARCHICHE & Sébastien TREYER, 2020. "Scaling up public development banks’ transformative alignment with the 2030 Agenda for Sustainable Development," Working Paper 8ae70006-df09-4050-910f-c, Agence française de développement.
    8. Régis MARODON, 2020. "Can development banks step up to the challenge of sustainable development?," Working Paper 8eb18544-95bf-404e-bbfe-e, Agence française de développement.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Megginson, William Leon, 2005. "The Financial Economics of Privatization," OUP Catalogue, Oxford University Press, number 9780195150629, Decembrie.
    2. Yang, Qing Gong & Temple, Paul, 2012. "Reform and competitive selection in China: An analysis of firm exits," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 286-299.
    3. Gemunu Nanayakkara, 2012. "Measuring the Performance of Microfinancing Institutions: A New Approach," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 13(1), pages 85-104, March.
    4. José Antonio Ocampo & Daniel Titelman, 2012. "Regional Monetary Cooperation in Latin America," Finance Working Papers 23324, East Asian Bureau of Economic Research.
    5. Kato, Takao & Long, Cheryl, 2006. "CEO Turnover, Firm Performance and Enterprise Reform in China: Evidence from New Micro Data," IZA Discussion Papers 1914, Institute of Labor Economics (IZA).
    6. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    7. Yair Aharoni & William Ascher, 1998. "Restructuring the arrangements between government and state enterprises in the oil and mining sectors," Natural Resources Forum, Blackwell Publishing, vol. 22(3), pages 201-213, August.
    8. Niels Hermes & Marek Hudon, 2018. "Determinants Of The Performance Of Microfinance Institutions: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1483-1513, December.
    9. José Antonio Ocampo, 2003. "Developing countries' anti-cyclical policies in a globalized world," Chapters, in: Amitava Krishna Dutt (ed.), Development Economics and Structuralist Macroeconomics, chapter 19, Edward Elgar Publishing.
    10. Navajas, Sergio & Schreiner, Mark, 1998. "Apex Organizations And The Growth Of Microfinance In Bolivia," Economics and Sociology Occasional Papers - ESO Series 28324, Ohio State University, Department of Agricultural, Environmental and Development Economics.
    11. Weber, Olaf & Ahmad, Adnan, 2014. "Empowerment Through Microfinance: The Relation Between Loan Cycle and Level of Empowerment," World Development, Elsevier, vol. 62(C), pages 75-87.
    12. Claustre Bajona & Tianshu Chu, 2004. "China's WTO Accession and Its Effect on State-Owned Enterprises," Economics Study Area Working Papers 70, East-West Center, Economics Study Area.
    13. Taye Mengistae & Lixin Colin Xu, 2004. "Agency Theory and Executive Compensation: The Case of Chinese State-Owned Enterprises," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 615-638, July.
    14. Hu, Fang & Leung, Sidney C.M., 2012. "Top management turnover, firm performance and government control: Evidence from China's listed state-owned enterprises," The International Journal of Accounting, Elsevier, vol. 47(2), pages 235-262.
    15. Roberto FRENKEL, 2003. "Globalization and financial crises in Latin America," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 18(207), pages 41-56.
    16. Bryson, Alex & Forth, John & Zhou, Minghai, 2014. "Who posts performance bonds and why? Evidence from China's CEOs," China Economic Review, Elsevier, vol. 30(C), pages 520-529.
    17. Recanatini, Francesca & Wallsten, Scott J. & Lixin Colin Xu, 2000. "Surveying surveys and questioning questions - learning from World Bank experience," Policy Research Working Paper Series 2307, The World Bank.
    18. Chhibber, Ajay, 2021. "India's Interventionist State: Reduce Its Scope and Increase Its Capability," MPRA Paper 105711, University Library of Munich, Germany, revised 01 Feb 2021.
    19. Zeller, Manfred & Ahmed, Akhter U. & Babu, Suresh Chandra & Broca, Sumiter S. & Diagne, Aliou & Sharma, Manohar, 1996. "Rural finance policies for food security of the poor," FCND discussion papers 11, International Food Policy Research Institute (IFPRI).
    20. Justin T Callais & Linan Peng, 2021. "The Impact of Place-Based Policy: Evidence from a Multiple Synthetic Control Analysis of the Northeastern Revitalization Program in China," Working Papers 2021-03, DePauw University, School of Business and Leadership and Department of Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:deveza:v:26:y:2009:i:5:p:677-694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CDSA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.