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Development banks : role and mechanisms to increase their efficiency

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  • Gutierrez, Eva
  • Rudolph, Heinz P.
  • Homa, Theodore
  • Beneit, Enrique Blanco

Abstract

Past performance of development banks, has generally been considered poor and the value of state ownership questioned. There are few institutions that achieve the optimum balance of effectively addressing a policy objective while being financially sustainable. Following the financial crisis, there is a renewed interest in the role development banks can play in weathering the crisis. The purpose of this paper is to highlight the lessons learned following the financial crisis and to present some of the best practices in development banking so that policy makers can be better informed should they be considering how to build strong state financial institutions to address current and future needs in their respective countries.

Suggested Citation

  • Gutierrez, Eva & Rudolph, Heinz P. & Homa, Theodore & Beneit, Enrique Blanco, 2011. "Development banks : role and mechanisms to increase their efficiency," Policy Research Working Paper Series 5729, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5729
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    References listed on IDEAS

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    Cited by:

    1. Eduardo Fernández-Arias & Ricardo Hausmann & Ugo Panizza, 2020. "Smart Development Banks," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 395-420, June.
    2. Marco FRIGERIO & Daniela VANDONE, 2018. "Virtuous or Vicious? Development Banks in Europe," Departmental Working Papers 2018-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Senra Hodelin, Reynaldo, 2022. "Public banking and economic growth: The experiences of 10 countries since the 1950s until 2017," Economic Systems, Elsevier, vol. 46(1).
    4. Torres, Ernani & Zeidan, Rodrigo, 2016. "The life-cycle of national development banks: The experience of Brazil's BNDES," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 97-104.
    5. Petrović Jadranka, 2018. "The Effects of State Development Banks on the Performance of Small and Medium Enterprises," Economic Themes, Sciendo, vol. 56(3), pages 389-411, September.
    6. Degl’Innocenti, Marta & Frigerio, Marco & Zhou, Si, 2022. "Development banks and the syndicate structure: Evidence from a world sample," Journal of Empirical Finance, Elsevier, vol. 66(C), pages 99-120.
    7. Gelb, Alan & Tordo, Silvana & Halland, Havard & Arfaa, Noora & Smith, Gregory, 2014. "Sovereign wealth funds and long-term development finance : risks and opportunities," Policy Research Working Paper Series 6776, The World Bank.
    8. Pietro Calice, 2013. "Working Paper 174 - African Development Finance Institutions: Unlocking the Potential," Working Paper Series 470, African Development Bank.
    9. Garcia, Alexandre Schwinden & Meurer, Roberto, 2022. "Effects of a development bank on the profitability of commercial banks: Evidence for Brazil," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 246-259.
    10. World Bank, 2013. "Mongolia : Improving Public Investments to Meet the Challenge of Scaling Up Infrastructure," World Bank Publications - Reports 13256, The World Bank Group.
    11. Anginer, Deniz & de la Torre, Augusto & Ize, Alain, 2014. "Risk-bearing by the state: When is it good public policy?," Journal of Financial Stability, Elsevier, vol. 10(C), pages 76-86.
    12. Mariana Mazzucato & Caetano C.R. Penna, 2016. "Beyond market failures: the market creating and shaping roles of state investment banks," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(4), pages 305-326, October.
    13. Konstantinos I. Loizos, 2017. "Alternative Financial Regimes and Development Banks in Greece 1963-2002: What Have We Learned?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 34-50, March.
    14. Ugo Panizza, 2013. "Guest Workers: Financial Development and Economic Growth: Known Knowns, Known Unknowns, and Unknown Unknowns," IHEID Working Papers 13-2013, Economics Section, The Graduate Institute of International Studies.
    15. de Luna-Martinez, Jose & Vicente, Carlos Leonardo, 2012. "Global survey of development banks," Policy Research Working Paper Series 5969, The World Bank.
    16. Alejandro Danon & Rafael Tessone & Milena Valens Upegui, 2023. "Financing in times of crisis: lessons from the impact assessment of Banco Provincia's working capital credit line during the pandemic," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(82), pages 77-97, November.
    17. Amamou, Raschid & Gereben, Áron & Wolski, Marcin, 2020. "Making a difference: Assessing the impact of the EIB's funding to SMEs," EIB Working Papers 2020/04, European Investment Bank (EIB).
    18. Alessandro Barbera & Áron Gereben & Marcin Wolski, 2022. "Estimating conditional treatment effects of EIB lending to SMEs in Europe," BIS Working Papers 1006, Bank for International Settlements.
    19. de Menezes Barboza, Ricardo & Vasconcelos, Gabriel F.R., 2019. "Measuring the aggregate effects of the Brazilian Development Bank on investment," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 223-236.
    20. Raschid Amamou & Áron Gereben & Marcin Wolski, 2023. "Assessing the impact of the EIB’s intermediated lending to SMEs during funding shocks," Small Business Economics, Springer, vol. 60(3), pages 975-1007, March.

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    Keywords

    Banks&Banking Reform; Debt Markets; Access to Finance; Emerging Markets; Bankruptcy and Resolution of Financial Distress;
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