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Understanding Regional Development Banks

The Regional Development Bank provides investment capital and loans to startup and developing businesses in low and middle income countries. Regional Development Banks allocate low interest loans and grants. They also provide financial and technical assistance to help developing businesses. Some major Regional Development Banks are the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank.

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106 views1 page

Understanding Regional Development Banks

The Regional Development Bank provides investment capital and loans to startup and developing businesses in low and middle income countries. Regional Development Banks allocate low interest loans and grants. They also provide financial and technical assistance to help developing businesses. Some major Regional Development Banks are the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank.

Uploaded by

Aaryavart Chourasia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

What is a Regional Development Bank?

The Regional Development Bank, RDB is a financial institution established to provide


investment capital for startup businesses and businesses in low or middle-income countries.
Regional Development Banks therefore provide financial assistance to businesses through the
allocation of low-interest loans and grants for developing businesses. Also, RDBs are multilateral
financial institutions established by a country or group of countries to help developing businesses
both financially and technically. Four institutions are summed up to RDB, these are; African
Development Bank (AfDB), Asian Development Bank (ADB), European Bank for
Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB).

What Does a Multilateral Development Bank Do?

Investment capital is crucial for any business to succeed, in fact, unavailability of funds can
cripple businesses. RDBs help businesses financially and technically without seeking to
maximise profits for [Link] development of business is importance to RDBs, this is
why these Multilateral Development Banks, MDBs offer loans with low or no interest to
developing businesses. They also offer grants to developmental projects in the major sectors of
an economy such as agriculture, education, health and others. There are two main type of MDBs,
the first form is made up of famous institutions while the other type is formed by governments of
low-income countries.

Multilateral Development Banks by Assets

Multilateral Development Banks are listed according to their valuable possessions otherwise
called assets. In MDBs or institutions, assets refer to tangible or intangible resources owned by
these banks. In this segment, MDBs are listed in line with the size of their holdings and their
balance sheets at the of 2016. European Investment Bank 573.2 billion ($666.3 billion) World
Bank $307.3 billion Asian Development Bank $125.9 billion Inter-American Development Bank
$113.3 billion European Bank for Reconstruction and Development 56.2 billion ($65.3 billion)
African Development Bank 29.7 billion XUA ($21.6 billion, as of Sept. 2017) Asian
Infrastructure Investment Bank $17.8 billion Islamic Development Bank 18.1 billion Islamic
dinars ($12.9 billion) New Development Bank $10.0 billion Central American Bank for
Economic Integration $9.2 billion

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