What is a development bank?

Development banks refer to banks that provide investment loans for economic development.

Development Bank is a national or regional financial institution, which aims to provide medium and long-term funds (usually with technical assistance) for productive investment in underdeveloped areas.

Extended data:

China Development Bank (CDB) is a policy-oriented financial institution established according to the State Council Document No.22, which has long been committed to providing financing for the construction and development of infrastructure, basic industries and pillar industries (referred to as "two bases and one branch"). 5438+On June 2, 2008, according to the deployment of the State Council, China Development Bank Co., Ltd. was established with a registered capital of 300 billion yuan, with the Ministry of Finance and Central Huijin Investment Co., Ltd. holding 5 1.3% and 48.7% respectively. After the reform, CDB mainly provides medium and long-term financial services such as credit and investment, serving the major medium and long-term development strategy of the national economy.

Development banks are financially self-financing, but they are not for profit, and most of them are founded by the state or government. Loans are generally aid in nature and the interest rate is relatively low.

Can be divided into the following three types:

(1) CDB. Established by the state in China to serve the domestic economic development, its source of funds mainly depends on issuing bonds in China. Such as the Japan Development Bank.

(2) Regional development banks. Established by countries in the same region (usually Europe) to serve the economic development of this region. Such as the Inter-American Development Bank and the Asian Development Bank.

(3) World Development Bank. For example, the International Bank for Reconstruction and Development, a specialized agency of the United Nations, plays a role in the world.

References:

Development Bank-Headline Encyclopedia