What are development banks?

Development banks are financial institutions that provide capital and support for projects aimed at fostering economic development, particularly in emerging markets and developing countries. They often focus on sectors such as infrastructure, agriculture, and small and medium-sized enterprises (SMEs), offering loans, equity investments, and technical assistance. Unlike commercial banks, development banks prioritize social and economic impact over profit maximization. They play a crucial role in mobilizing resources and facilitating investments that contribute to sustainable growth and poverty reduction.