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The Future of National Development Banks - Final Meeting

April 19, 2017

Carnegie Endowment   Washington, District of Columbia, United States

Agenda  309kb pdf
Meeting Report  252kb pdf
Image for The Future of National Development Banks - Final Meeting

This is the outcome of a two- year Columbia University’s Initiative for Policy Dialogue (IPD) research project on national development banks, which has been supported by Brazil’s National Economic and Social Development Bank (BNDES) and the Development Bank of Latin America (CAF).

In the wake of the 2007/09 North-Atlantic financial crisis, as concern about the limitations of a purely private financial system grew, the positive roles that many national development banks played during the crisis and its aftermath have been increasingly accepted. This renewed support was apparent in emerging and developing countries – such as Brazil and China, where development banks have played a key role —but also increasingly in developed economies, like Germany. 

Partners

  • BNDES
    Rio de Janeiro, Brazil
  • CAF
    Lima, Peru

An important point not frequently made in the current literature is that, a more diversified financial structure may have several advantages, including in competition and financial stability, when compared to structures focused mainly in private (often large) banks. Firstly, it may encourage competition between different types of financial institutions, such as development and private banks, which could lead to reducing the spreads they charge. Secondly, a more diversified financial system, especially if not having inter-connected risks, could lead to less systemic risk and therefore contribute to financial stability. Thirdly, if different varieties of financial institutions have different strengths, having a more diverse system could make it more likely that the financial sector functions needed for inclusive growth are achieved.

Many national development banks, though having paid-in capital provided by Governments, raise their funds on the national and sometimes international private capital markets. Typically, their loans are also co-financed by private agents, helping to prolong the maturities that private finance provides. Leveraging public resources with private ones has been especially valued in contexts of limited fiscal space, like in the European Union in the wake of the Eurozone debt crisis.

It is important to underscore that what should be promoted are “good” national development banks. To have “good” national development banks implies having institutions that have clear mandates, are well-governed and well run, so they can fulfill their functions well. Their main objective is to maximize their development impact rather than profits, though assuring at least minimal commercial returns. Their creation and consolidation can thus be understood as part of the effort to build strong state capacities. Indeed, when they fulfill these objectives, they can play a central role in implementing crucial government policies, such as industrial policy, infrastructure investment and social inclusion.

A key challenge is how national development banks can, working with governments, achieve these goals, which is one of the central themes of this project. Furthermore, “good” national development banks need to collaborate effectively, both with private financial institutions and investors, as well as with regional and multilateral development banks.

BNDES Partnership


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The Future of National Development Banks - Final Workshop, April 2017
Speakers and Collaborators - Final Workshop, Washington DC, April 2017
Left to right: Jose Antonio Ocampo (IPD), Lavinia Barros de Castro (BNDES), Stephany Griffith-Jones (IPD), Pablo Sanguinetti (CAF)
Lavinia Barros de Castro (BNDES) presents her research
Paola Arias (SIPA, Columbia University) discusses Colombia's system of national development banks
Left to right: Mariana Mazzucato (UCL), Stephany Griffith-Jones (IPD) & Jose Antonio Ocampo (IPD)
The Future of National Development Banks: Project Overview

399kb pdf
Lavinia Barros de Castro

Workshop Presentation - April 19, 2017

BNDES: Bad Jabuticabas And The Elephant In The Room

3.31mb pdf
Rogerio Studart

Workshop Presentation - April 19, 2017

NAFINSA: Mexico's Modernization of Development Banks - Lights and Shadows

1.07mb pdf
Juan Carlos Moreno-Brid

Workshop Presentation - April 19, 2017

The Role of CORFO in Chile´s Development - Achievements & Challenges

464kb pdf
Stephany Griffith-Jones,
Luz Martinez Sola

Workshop Presentation - April 19, 2017

Colombia’s System of National Development Banks

1.32mb pdf
José Antonio Ocampo,
Paola Arias Gomez

Workshop Presentation - April 19, 2017

CDB: Born Bankrupt, Born Shaper

3.11mb pdf
Qiyuan Xu

Workshop Presentation - April 19, 2017

National Promotional Banks as Active Financiers: The Case of KfW

1.11mb pdf
Peter Volberding,
Ulf Moslener,
Matthias Thiemann

Workshop Presentation - April 19, 2017

The Experience of Development Banking in Peru: 1990-2015

592kb pdf
Oscar Dancourt,
Renzo Jimenez

Workshop Presentation - April 19, 2017

State Investment Banks: Investors of First Resort

2.21mb pdf
Mariana Mazzucato

Workshop Presentation - April 20, 2017

Financial Regulation and Risk Management in Development Banks

1.18mb pdf
Lavinia Barros de Castro

Workshop Presentation - April 20, 2017

The Countercyclical Role of National Development Banks

1.20mb pdf
Alfredo Schclarek,
Michael Brei

Workshop Presentation - April 20, 2017

The Future of National Development Banks - Publication Draft

7.71mb pdf

Compilation of all research manuscripts for the project.

BNDES - Institutional Message

93kb pdf
Lavinia Barros de Castro

The Future of National Development Banks

1.67mb pdf
José Antonio Ocampo,
Stephany Griffith-Jones,
Alfredo Schclarek,
Felipe Rezende,
Michael Brei

Manuscript

CDB: Born Bankrupt, Born Shaper

1.72mb pdf
Qiyuan Xu

Manuscript

National Development Banks as Active Financiers: The Case of KfW

843kb pdf
Peter Volberding,
Ulf Moslener,
Matthias Thiemann

Manuscript

Colombia's System of National Development Banks

1.68mb pdf
José Antonio Ocampo,
Paola Arias Gomez

Manuscript

The Future of Development Banks: The case of Brazil’s BNDES

1.65mb pdf
Rogerio Studart,
Luma Ramos

Manuscript

The role of CORFO in Chile’s Development: Achievements and Challenges

1.61mb pdf
Stephany Griffith-Jones,
Luz Martinez Sola,
Javiera Petersen

Manuscript

Changing Challenges in the Modernization of Nacional Financiera: Mexico's Key Development Bank

1.08mb pdf
Esteban Perez Caldentey,
Juan Carlos Moreno-Brid,
Laura Valdez

Manuscript

The Experience of Development Banking in Peru: 1990-2015

1.27mb pdf
Oscar Dancourt,
Renzo Jimenez

Manuscript

Financial Regulation and Risk Management in Development Banks

793kb pdf
Lavinia Barros de Castro

Manuscript

The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean

1.27mb pdf
Alfredo Schclarek,
Michael Brei

Manuscript

Financial Sustainability and Infrastructure Finance: the role of developing banks

2.01mb pdf
Felipe Rezende

Manuscript