What is a development bank?

A development bank is a financial institution dedicated to providing medium- and long-term funding for economic development projects. Unlike commercial banks, development banks focus on fostering growth in specific sectors such as infrastructure, agriculture, or industry, often in underserved regions. They play a crucial role in supporting projects that may be considered too risky or unprofitable by private lenders, helping to stimulate economic progress and reduce poverty. Development banks can operate at national, regional, or international levels and often work closely with governments and other organizations.