Development bank

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Development banks ( english development banks ) are specialized banks , through consultation , economic or technical assistance to economic and social development of developing countries or their regions to promote.

General

Development banks are entrusted with special tasks that commercial banks do not undertake because of the associated high credit risk and special know-how . They mostly operate in countries whose creditworthiness is classified as speculative by rating agencies . Development banks usually handle government development finance. Most industrialized countries have set up specific development banks for this purpose . Great Britain, on the other hand, has no development banks because, for historical reasons, development cooperation does not grant loans , but only grants .

history

Development banks are a relatively young type of bank, as the forerunner of today's French Agence Française de Développement was the first in December 1941 to finance projects in the French overseas provinces . In December 1945 the World Bank was established , today the largest development bank . In February 1948, the Commonwealth Development Corporation (CDC) was founded in London . The development bank of the federal government is the KfW founded in November 1948 . One of the youngest development banks is the Oesterreichische Entwicklungsbank (OeEB) , which has existed since March 2008 .

species

Depending on the area of ​​activity, a distinction is made between multilateral and regional development banks . If, due to its statutes, the eligible area is limited to the home country or to certain other countries, one speaks of a regional or international development bank with a regional focus. These are "self-help institutions" in the respective regions to promote their economic development. At the European level, there are two major regional development banks, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development . The Asian Development Bank operates in Asia . Multinational or international development banks are not restricted by the state and can perform their tasks worldwide. These include the World Bank and KfW. The Deutsche Bundesbank lists a total of 26 internationally active development banks.

tasks

In addition to advisory activities, economic aid plays a particularly important role at development banks. This takes place primarily through the granting of loans or the acquisition of investments from bank funds. Since development aid is usually provided bilaterally between states, development banks are only involved as trustees . To systematize, many development banks work with so-called programs that provide for certain development projects and define the funding conditions ( conditionality ) for this. In order to prevent the total or partial seepage of the funds through corruption in the beneficiary developing countries in the following development financing , on-site controls can be provided for the use of the funds.

For the most part, development banks provide part of the necessary financing for investments in the public sector and also grant loans for private-sector projects (without the protection of government guarantees ). Development banks can also share their projects with other commercial banks as part of co-financing .

The refinancing of development banks is mainly through the issuance of bonds ensured that due to good ratings on the capital market are easy to sell. This is due also to the banking supervisory legal equality of 14 multilateral development banks with States to which risk weight is given to 0%. The capital adequacy regulation (CRR) applicable to credit institutions in EU member states provides for this risk weighting in Article 117 (2) CRR for these 14 development banks, with the result that other credit institutions do not have to back their risk positions vis-à-vis development banks with equity . This privilege also applies to bonds issued by multilateral development banks which, as collateral, are treated as equivalent to European government bonds (Art. 197 (2c) CRR). According to Art. 400 (1b) CRR, bank loans to multilateral development banks do not count as large loans .

Well-known development banks (selection)

Individual evidence

  1. ↑ Hartmut Ihne, Jürgen Wilhelm: Introduction to Development Policy , 2013, p. 536.
  2. ↑ Wolfgang Eibner: International Economic Integration , 2008, p. 98.
  3. ↑ Thomas Hartmann-Wendels, Andreas Pfingsten, Martin Weber: Bankbetriebslehre , Volume 1, 1998, pp. 61–62.
  4. ↑ Karlheinz Müssig, Josef Löffelholz: Bank-Lexikon: Concise dictionary for money, banking and stock exchange , 1998, Sp. 707 f.
  5. ↑ Deutsche Bundesbank: Banking Statistics, Customer System , January 2014, p. 28.
  6. ↑ Springer Fachmedien, Compact Lexicon Economic Theory , 2013, p. 89 f.