This note identifies elements to consider when establishing and operating the proposed Development Bank of Mozambique (MDB). It is motivated by the recently circulated draft National Development Strategy which calls for the creation of a development bank to promote economic development by mobilizing and allocating financial resources for long-term investment.
... See More + The note neither endorses nor opposes the establishment of the proposed development bank in Mozambique. The note is organized as follows: following this introduction, section two highlights recent progress in outreach and access to finance in Mozambique and identifies three market gaps, limited availability of long-term finance, agricultural finance, and Small and Medium Enterprise (SME) finance, which are often cited as reasons for government intervention; section three assesses a potential role for the development bank in addressing these gaps; section four discusses elements to consider when establishing and operating such development bank; and section five concludes.
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This note reviews state-owned banks in Belarus and offers recommendations on how to strengthen them. It covers the Belarusbank, Belagroprombank, Belinvestbank, and Paritetbank (the public banks), and the recently established Development Bank of Belarus (DBB).
... See More + Recommendations focus on corporate governance, funding, ownership function, mandate, lending models, and regulation and supervision. The note is based on information provided by the public banks, the Ministry of Finance, and the NBRB. However, due to their unavailability, the team did not hold meetings with the DBB and the Ministry of Economy. Thus, the analyses concerning the DBB are based on the review of its law as well as on discussions with the Ministry of Finance and the NBRB. The note is organized as follows: after this introduction, section two presents an overview of the public banks in Belarus and the role that they play in the local economy; section three discusses the details of Lending under Government Programs (LGP) and the importance for the public banks of the funding attached to these programs; section four analyzes the key features of the DBB, offering recommendations on how strengthen it; and section five concludes.
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Working Paper 86040 DEC 03, 2012
Leonardo Vicente, Carlos; Martinez , Jose De Luna; Lutsenko, NataliyaDisclosed
Historically, development banks have been an important instrument of governments to promote economic growth by providing credit and a wide range of advisory and capacity building programs to households, small and medium enterprises, and even large private corporations, whose financial needs are not sufficiently served by private commercial banks or local capital markets.
... See More + During the current financial crisis, most development banks in Latin America, followed by Asia, Africa, and Europe, have assumed a countercyclical role by scaling up their lending operations exactly when private banks experienced temporary difficulties in granting credit to the private sector. Despite the importance of development banks during crisis and non-crisis periods, little is known about them. This survey examines how development banks operate, what their policy mandates are, what financial services they offer, which type of clients they target, how they are regulated and supervised, what business models they have adopted, what governance framework they have, and what challenges they face. It also examines the countercyclical role played by development banks during the recent financial crisis. This survey is based on new data that have been collected from 90 national development banks in 61 countries.
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Policy Research Working Paper WPS5969 FEB 01, 2012
de Luna-Martinez, Jose; Vicente, Carlos LeonardoDisclosed
