IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Banking on Development: Private Banks ans Aid Donors in Developing Countries

Listed author(s):
  • Javier Rodríguez


  • Javier Santiso


Over the past decade we have witnessed a double convergence. Aid donors have developed a growing interest in the private sector while private banks have set about creating corporate social responsibility programs, sustainable lending and microfinance programmes. As a consequence, the dialogue between private banks and aid donors has been intensifying, opening new avenues for collaboration. The aim of this paper is to map the potential synergies between private banks and aid donors. A survey of private bank lending towards developing countries is undertaken in order to identify the private banks most active in those economies and provide an analytical tool to help identify the scope for public and private partnerships. We find an international division of labour in bank lending: within the developing world, banks from OECD countries tend to focus their credit on specific regions and countries. This mapping of private bank lending also allows us to pinpoint concrete examples of best practices in private bank and financial actors/aid donors collaborations. We follow by discussing some of the more important cases in the field, and conclude with the potential implications for improved partnerships between private banks and donor organisations. Au cours de ces dix dernières années, nous avons pu observer une double convergence. D’une part, l’intérêt des donneurs d’aide pour le secteur privé s’est accru, et d’autre part, les banques privées ont développé des programmes pour promouvoir la responsabilité sociale des entreprises, le crédit soutenable, et des projets dans le domaine de la microfinance. En conséquence, le dialogue entre les banques privées et les donneurs d’aide s’est intensifié, ce qui laisse entrevoir une collaboration plus étroite à l’avenir. Le but de ce papier est d’évaluer précisément le potentiel de ces synergies entre banques privées et donneurs d’aide. Dans l’objectif de réaliser un outil d’analyse pertinent et d’aider à identifier des partenaires potentiels pour les donneurs d’aide, nous avons conduit une étude des crédits accordés par les banques privées aux pays en développement afin de repérer les institutions financières privées les plus actives au sein de ces économies. Nous montrons qu’il existe une division internationale dans l’activité de prêt des banques : les banques des pays donneurs opèrent une spécialisation régionale dans les pays en développement. La réalisation d’une telle étude de l’activité créditrice des banques privées permet également d’introduire un exercice de repérage des meilleures pratiques, au niveau micro, des projets spécifiques développés conjointement par les banques privées et les donneurs d’aide. Nous dégageons les principaux cas d’étude, dans l’objectif de repérer les meilleures opportunités de coopération internationale et de mise en place de partenariats public/privé entre les banques privées et les donneurs d’aide.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 263.

in new window

Date of creation: 01 Nov 2007
Handle: RePEc:oec:devaaa:263-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Marco Arena & Carmen Reinhart & Francisco Vázquez, 2006. "The Lending Channel in Emerging Economics: Are Foreign Banks Different?," NBER Working Papers 12340, National Bureau of Economic Research, Inc.
  2. Buch, Claudia M. & Lipponer, Alexander, 2007. "FDI versus exports: Evidence from German banks," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 805-826, March.
  3. Stijn Claessens & Neeltje Horen, 2014. "Location Decisions of Foreign Banks and Competitor Remoteness," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(1), pages 145-170, 02.
  4. Philipp Harms & Matthias Lutz, 2006. "Aid, Governance and Private Foreign Investment: Some Puzzling Findings for the 1990s," Economic Journal, Royal Economic Society, vol. 116(513), pages 773-790, 07.
  5. Javier Rodríguez & Javier Santiso, 2007. "Banking on Democracy: The Political Economy of International Private Bank Lending in Emerging Markets," OECD Development Centre Working Papers 259, OECD Publishing.
  6. Cerutti, Eugenio & Dell'Ariccia, Giovanni & Martinez Peria, Maria Soledad, 2007. "How banks go abroad: Branches or subsidiaries?," Journal of Banking & Finance, Elsevier, vol. 31(6), pages 1669-1692, June.
  7. repec:dau:papers:123456789/15029 is not listed on IDEAS
  8. repec:idb:brikps:36799 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:263-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.