Developmental Financial Institutions has been saved
Developmental Financial Institutions
Strategic choices to build a sustainable operating model
During economic disruption caused by Covid-19, Developmental Finance Institutions (DFIs) have emerged as a source of finance and preferred vehicles to deliver financial stimulus support provided by the governments. This has bought into focus the importance of wellfunctioning DFIs to the overall development of economies.
DFIs are specialized institutions aimed at fulfilling certain policy objectives of providing finance to those market segments that are unlikely to be funded by commercial financial sector.
More than 500 Public Development Financial Institutions (DFIs) around the world play an important role for countries and sectors in helping them attain their planned visions.
As DFIs are experiencing an emerging renaissance worldwide, this paper explores current overview of DFIs, key challenges faced by them which hamper their growth, sustainability and strategic choices that governing bodies and senior management should consider to address these challenges and move forward.