IACPM paper on Bank interaction with DFI’s for the mobilisation of private capital for the SDG’s
Year: 2021
Content Type: Policy Brief
Description: This research paper seeks to broaden the understanding of private sector capital mobilization by exploring the relationship between private sector banks and Development Finance Institutions (DFIs) from the perspective of the private sector. Twenty interviews were conducted with private sector banks on a confidential basis either online or over the telephone due to Covid restrictions. The discussions around risk and reward had to determine how the involvement of a DFI affected the economics of a transaction and the relative appeal of different transaction structures. Overall, the sentiment toward DFIs is positive. DFIs are perceived as important clients and as valuable partners to private sector banks. Nonetheless, giving DFIs’ staff more autonomy on risk acceptance would mirror the private sector, and in the context of mobilization, would be a consistent way to approach crowding in.
Pages: 16 pages
Author: Christopher A. McHugh, University of Southampton
Publisher: International Association of Credit Portfolio Managers (IACPM)
Agrovocs/Keywords: Private Sector, SDGs, Capital, Development Finance Institutions, MDBs, NDBs
