View source for Finance:Development finance institution

[[File:Top 10 clean energy financing institutions 2014.png|thumb|Top 10 clean energy financing institutions 2014]]
A '''development finance institution''' ('''DFI''') also known as a '''development bank''' or '''development finance company''' ('''DFC''') is a [[Finance:Financial institution|financial institution]] that provides [[Finance:Risk capital|risk capital]] for [[Finance:Economic development|economic development projects]] on non commercial basis.  They are often established and owned by governments or charitable institutions to provide funds for projects that would otherwise not be able to get funds from commercial lenders.  Some development banks include [[Social:Socially responsible investing|socially responsible investing]] and [[Social:Impact investing|impact investing]] criteria into their mandates.  Governments often use development banks to form part of their development aid or [[Finance:Economic development|economic development]] initiatives.

DFIs can include multilateral development banks, [[Finance:National development bank|national development bank]]s, bilateral development banks, microfinance institutions, [[Finance:Community development financial institution|community development financial institution]] and revolving loan funds.<ref>Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economic Development, Washington, DC: CFED, July 2006</ref> These institutions provide a crucial role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries.<ref name=ODI>Dirk Willem te Velde and Michael Warner (2007) [http://www.odi.org.uk/resources/details.asp?id=433&title=use-subsidies-development-finance-institutions-infrastructure-sector Use of subsidies by Development Finance Institutions in the infrastructure sector] Overseas Development Institute</ref> DFIs are typically backed by countries with developed economies. 

{{as of|2005}}, total commitments (as loans, equity, guarantees and debt securities) of the major regional, multilateral and bilateral DFIs totalled US$45 billion (US$21.3 billion of which went to support the private sector).<ref name=ODI/>  DFIs often provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.<ref name=ODI/>

Development banks include:

* [[Social:Community development bank|Community development bank]]s which fund low-income areas in the United States
* [[Organization:International financial institutions|International financial institutions]] conducting development-oriented finance on a bilateral or multilateral basis
* [[Finance:National development bank|National development bank]]s are government-owned financial institution that provides financing for economic development.
* Multilateral development bank are development banks set up by a group of countries and often operate under international laws.

==References==
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