Gutierrez, EvaRudolph, Heinz P.Homa, TheodoreBlanco Beneit, Enrique2012-03-192012-03-192011-07-01https://hdl.handle.net/10986/3493Past 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.CC BY 3.0 IGOACCESS TO BANKACCESS TO FINANCINGACCOUNTABILITYACCOUNTINGADMINISTRATIVE COSTSASSET-BACKED SECURITIESASYMMETRIC INFORMATIONAUDIT COMMITTEEAUDITINGAUDITORSBALANCE SHEETBALANCE SHEET ANALYSISBALANCE SHEETSBANK CREDITBANK OF CANADABANK REGULATIONBANKING CORPORATIONBANKING MODELSBANKING SECTORBANKING SERVICESBANKING SYSTEMBIDSBORROWERBUDGET CONSTRAINTSBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT BANKCAPITAL MARKETSCAPITALIZATIONCASH FLOWSCENTRAL BANKSCIVIL CODECOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMPANY LAWCONFLICT OF INTERESTSCONFLICTS OF INTERESTCONTRACT ENFORCEMENTCOORDINATION FAILURECOORDINATION FAILURESCORPORATE BANKINGCORPORATE GOVERNANCECREDIT AGENCIESCREDIT APPRAISALCREDIT CARDCREDIT COOPERATIVESCREDIT DECISIONSCREDIT GROWTHCREDIT GUARANTEECREDIT GUARANTEESCREDIT HISTORYCREDIT INSTITUTIONCREDIT LINESCREDIT MARKETCREDIT PROVISIONCREDIT RISKCREDIT SCORINGDEBTDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDEVELOPMENT BANKINGDEVELOPMENT BANKSDEVELOPMENT FINANCEDOMESTIC CREDITECONOMIC ACTIVITIESECONOMIC DEVELOPMENTEMPLOYMENTENTREPRENEURSHIPEQUIPMENTEQUITY FUNDEXPORTEREXPORTERSEXTERNALITIESFACTORINGFEDERAL RESERVEFINANCIAL CONGLOMERATESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL INFRASTRUCTURESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL RISKFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMFISCAL POLICIESFLEXIBLE REPAYMENTFOREIGN BANKFOREIGN BANKSGLOBAL CAPITALGLOBAL CAPITAL MARKETSGLOBALIZATIONGOVERNANCE STANDARDSGOVERNMENT BUDGETGOVERNMENT GUARANTEESGOVERNMENT OWNERSHIPGOVERNMENT POLICIESGOVERNMENT POLICYGOVERNMENT SUBSIDIESGUARANTEE FUNDHOLDINGHOME MORTGAGEHOUSINGIMPLICIT GOVERNMENT GUARANTEESINFLATIONINFORMATION ASYMMETRIESINFRASTRUCTURE FINANCEINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSTRUMENTINTANGIBLEINTANGIBLE ASSETSINTEREST RATEINTEREST RATESINTERNAL AUDITINTERNATIONAL BANKINTERNATIONAL MARKETINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTINGINVESTMENT OPPORTUNITIESJUDICIAL SYSTEMSLEGAL CONSTRAINTSLEGAL SYSTEMSLENDERLENDER OF LAST RESORTLENDERSLENDING INSTITUTIONSLEVEL OF RISKLEVEL PLAYING FIELDLEVYLIMITED BORROWING CAPACITYLIQUIDATIONSLIQUIDITYLOANLOAN PORTFOLIOLOAN RATESLOANS TO CUSTOMERSLOCAL GOVERNMENTSLONG-TERM CAPITALLONG-TERM COSTMANDATESMARKET CONDITIONSMARKET DISTORTIONSMARKET FAILUREMARKET FAILURESMARKET SHAREMATURITIESMICRO ENTERPRISEMICRO-FINANCEMICROFINANCEMICROFINANCE INSTITUTIONSMINORITY SHAREHOLDERSMONETARY POLICYNATIONAL TREASURYOPEN MARKETOPPORTUNITY COSTPARTIAL CREDITPLEDGE COLLATERALPOLICY CREDIBILITYPOLITICAL RISKSPORTFOLIOPRICE RISKPRICE RISKSPRIVATE BANKSPRIVATE CAPITALPRIVATE COMMERCIAL BANKSPRIVATE CREDITORSPRIVATE EQUITYPRIVATE FINANCIAL INSTITUTIONSPRIVATE FINANCIAL SECTORPRIVATE LENDINGPRIVATIZATIONPROFITABILITYPROVISION OF CREDITPUBLIC BANKPUBLIC BANKSPUBLIC OFFERINGSRATE OF RETURNREGULATORY FRAMEWORKREPAYMENTRESOURCE ALLOCATIONRETURN ON EQUITYRETURNSRISK AVERSIONRISK FRONTIERRISK MANAGEMENTRISK MANAGEMENT SYSTEMSSAVINGSSECURITIESSECURITIES ISSUANCESHAREHOLDERSHAREHOLDERSSTATE INTERVENTIONSTOCK EXCHANGESTUDENT LOANSSUBSIDIARIESSUPERVISORY AGENCYSUPERVISORY AUTHORITIESSUPERVISORY BOARDSYSTEMIC RISKTECHNICAL ASSISTANCETRADE FINANCINGTRANSACTIONTRANSACTION COSTSTRANSPARENCYTRUST FUNDWorld Bank10.1596/1813-9450-5729