scholarly journals Regional Development Banks in the World Economy

Regional development banks (RDB) have become increasingly important in the world economy, but have also been relatively under-researched to date. This timely volume addresses this lack of attention by providing a comprehensive, comparative, and empirically informed analysis of their origins, evolution, and contemporary role in the world economy through to the second decade of the twenty-first century. The editors provide an analytical framework that includes a revised categorization of RDB by geographic operation and function. In part one, the chapter authors offer detailed analyses of the origins, evolution, and contemporary role of the major RDB, including the Inter-American Development Bank, the African Development Bank, the Asian Development Bank, the European Investment Bank, the Central American Bank, the Andean Development Corporation, the European Bank for Reconstruction and Development, and the Asian Infrastructure Investment Bank. In part two, the authors engage in comparative analyses of key topics on RDB, examining their initial design and their changing business models, their shifting role in promoting policies supported by the United States as hegemon and the private sector. The volume ends with a critical reflection on the role played by RDB to date and a strong defence of the need for these banks in an increasingly complex world economy.

Author(s):  
David Howarth ◽  
Moritz Liebe

The European Investment Bank (EIB) has been at the vanguard of public-private partnership (PPP) promotion and has been followed by most regional development banks (RDB) and many national development banks around the world. EIB activism on the promotion of PPPs can best be understood through the lenses of policy and norm entrepreneurship. Operating strategically, the EIB repeatedly created a ‘policy window’ through which to promote PPPs in different contexts. The EIB developed unrivalled PPP expertise among public bodies globally—with the possible exception of the United Kingdom Treasury. While the EIB was potentially motivated by ‘rationalist’ institutional goals, ideational considerations motivated a small group of British and Irish norm entrepreneurs to promote PPPs. The EIB promoted PPP usage to other RDB through the sharing of expertise and the joint financing of projects.


Author(s):  
Anastassia V Obydenkova ◽  
Vinícius G Rodrigues Vieira

Abstract Which limitations does the hegemon face when exerting financial statecraft through multilateral institutions? Recent studies indicate that intergovernmental organizations (IGOs) that are tools of collective financial statecraft sponsored by the United States, like the World Bank and the International Monetary Fund, lead developing states to align with Washington in the United Nations (UN). The same effect is verified in the case of US bilateral aid. Little, however, has been discussed about the effect of American-sponsored regional development banks (RDBs) in the same context. RDBs are IGOs with unique characteristics as each of them covers a region of the world and relies on resources from developed sponsors and developing borrowing members alike. In this article we aim to fill this gap in the debates on economic and financial statecraft by demonstrating through tobit models that the higher the material capabilities of a borrowing state that takes loans, the less likely it is to align with the United States at the UN General Assembly (UNGA). Membership of all RDBs but the European Bank for Reconstruction and Development (EBRD) yields the same effect. Results indicate the need to develop further research on RDBs to assess whether they create incentives for challenging the hegemon.


Author(s):  
Ririn Poerwanti ◽  
Titis Puspitaningrum Dewi Kartika

Purpose: This study aimed to analyze the effect of CAR, NPL, and LDR on credit growth in the 8 (eight) Regional Development Bank in Indonesia, especially in Java, Bali & NTT in the period 2011-2015. Design/methodology/approach: The samples used were taken using census method which includes the entire population.. Findings: Partial test result indicate that CAR is negative and significant effect on credit growth as well as a significantly positive effect on earning growth. NPL ratio partially no significant effect on credit growth but significant effect on earning growth.   Research limitations/implications: LDR no significant effect on credit growth but significantly and positively affect profit growth while existing credit growth is able to mediate the perpetually perfect (perfect mediation) between CAR, NPL and LDR on regional development bank profit growth in Java, Bali and NTT in the period 2011 to 2015. Practical implications: 2.  The financial ratios assessed from the CAR, NPL and LDR before involving intervening variables of credit growth significantly affected the increase in profit at Regional Development Banks in Java, Bali and NTT as evidenced by simultaneous test results with P-value of F or significance of 0.019 <a '(5%). Originality/value: The ratio of CAR, NPL and LDR significantly affects credit growth in Regional Development Banks in Java, Bali and NTT through simultaneous testing with P value of F or a significance level of 0.004 <a '(5%).  Paper type: Research paper


1981 ◽  
Vol 35 (2) ◽  
pp. 303-328 ◽  
Author(s):  
Stephen D. Krasner

This paper examines the experience of developing countries in the three major regional financial institutions, the Inter-American, Asian, and African Development Banks. In the Inter-American Development Bank, members from developing countries have secured both influence and resources; in the Asian Development Bank they have secured resources but little influence; in the African Development Bank they have influence but limited resources. This variation can be explained by the different issue area power structures within which the banks function. The Inter-American Development Bank has functioned within a hegemonic structure. The dominant power, the United States, pursued long-term political objectives and accepted considerable autonomy for developing countries within the Bank. The Asian Development Bank has functioned within a bipolar structure with Japan playing an increasingly important role. As a normal power, Japan has pursued tangible economic interests and has constrained the behavior of the Asian Development Bank. Until the late 1970s the African Development Bank functioned in a multipolar structure that largely excluded nonregional countries. This exclusion made it impossible to generate substantial resources. Experience in the regional development banks suggests that a hegemonic structure can offer weaker states both resources and influence provided that the milieu goals of the dominant power are not violated.


Author(s):  
Ismail Erkan Celik ◽  
Hasan Dinçer ◽  
Ümit Hacioğlu

The World Bank is the most important financier for international investment. The bank opens credits mostly for investment projects in developing countries. Turkey has received various investment credits since its membership to the World Bank on March 11, 1947. The credits were used for economic and social domains. Turkey has also been granted credits from the European Investment Bank (EIB). The credits received are composed of micro credits that belong to Small and Medium Enterprises (SMEs). A regional development bank, Islamic Development Bank, has also received credits through Eximbank and Industrial Development Bank of Turkey (TSKB) to finance Turkish SMEs. This chapter deals with Turkish investment strategies in the framework of basic principles of investment – development banks.


Author(s):  
Ismail Erkan Celik ◽  
Hasan Dinçer ◽  
Ümit Hacioğlu

The World Bank is the most important financier for international investment. The bank opens credits mostly for investment projects in developing countries. Turkey has received various investment credits since its membership to the World Bank on March 11, 1947. The credits were used for economic and social domains. Turkey has also been granted credits from the European Investment Bank (EIB). The credits received are composed of micro credits that belong to Small and Medium Enterprises (SMEs). A regional development bank, Islamic Development Bank, has also received credits through Eximbank and Industrial Development Bank of Turkey (TSKB) to finance Turkish SMEs. This chapter deals with Turkish investment strategies in the framework of basic principles of investment – development banks.


2019 ◽  
Vol 2 (2) ◽  
pp. 148
Author(s):  
Ratih Setyo Rini ◽  
Eko Aristanto

People's Business Credit (KUR) is a Credit / Financing scheme specifically for Micro, Small and Medium Enterprises and Cooperatives whose businesses are feasible but do not have sufficient collateral required by the bank (unbankable). The research objective was to analyze the Effect of People's Business Credit (KUR) Distribution, Interest Rates on Financial Performance of Regional Development Banks Through Non-Performing Loans (NPL) and Operating Costs and Operating Revenues (BOPO) and analyze the differences in financial performance of Regional Development Banks before and after becoming KUR distribution Bank. The sample used in this study is the Regional Development Bank in Java, which has been incorporated in the KUR Distribution Bank in 2008, namely BPD in Yogyakarta, BPD East Java and BPD DKI Jakarta. The observation used data from the Regional Development Bank for the period 2005-2015. The results of the credit distribution and interest rates in the KUR distribution did not have a significant impact on the NPL and BOPO and showed that there were no better significant differences in the financial performance variables in the years BPD became the KUR distributor. The result recommends BPD to continue distributing KUR.


2018 ◽  
Vol 7 (4.38) ◽  
pp. 1101
Author(s):  
Galina Alekseevna Bunich ◽  
Yuriy Aleksandrovich Rovenskiy ◽  
Julia Tambievna Akhvlediani ◽  
Elena Anatolievna Zvonova

The modern stage of global financial market development is marked by intensive innovation. One of its peculiarities is quick formation and improvement of activities carried out by international regional development banks.The establishment of international regional development banks happened in the 1960s. During this period, development banks were founded in the countries and regions that got free from colonial dependency.At present, concerted efforts are observed in the sector of international regional development banks.During half a century of the activities, the mission, goals and operating principles of international regional development banks have changed conspicuously. Now their priorities are to finance long-term programs of regional infrastructure development, to invest in global projects and to lend socio-economic development programs.Along with earlier established international regional development banks, new institutions are also created. The primary reason for the establishment of these financial institutions is a region’s need to draw global investment.One of the newly established regional development banks is the Eurasian Development Bank that substantially differs from banks in operation. The Bank’s primary specific features are the parity compliance with the interests of the region’s countries and the attainment of socio-economic tasks related to the region’s development.  


2019 ◽  
Vol 12 (1) ◽  
pp. 98-109
Author(s):  
V. V. Antropov

The subject of the researchis the functioning of multilateral development banks in the world economy and prospects for their cooperation with Russia.The relevanceof the problem is due, firstly, to the need to make a revision of the Russian policy of cooperation with international financial organizations so as to use their practices in programs of socioeconomic transformations and expand the country’s presence in the global economy, and, secondly, to the availability of huge resources accumulated by the largest multilateral banks with prospects of their use for the domestic economy modernization.The purpose of the researchwas to consider the business specifics and prospects of cooperation of multilateral development banks with Russia with a focus on investment activities carried out by the World Bank divisions and three multilateral development banks — the African Development Bank, the Asian Development Bank and the Inter-American Development Bank — that are analyzed in terms of their functions at the regional level and in the world economy. The paper gives an assessment of the current state of Russia’s cooperation with multilateral development banks and examines its prospects.It is concludedthatRussia needs to develop an understanding of its own position with regard to the activities of the above organizations and build a cooperation system that would contribute to the realization of its national interests and be in line with the country’s economic development policies.


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