Financial System Development
A Prerequisite for Growth and Prosperity
Financial System Development. Quelle: KfW-Bildarchiv / Bernhard Schurian
Effective and efficient financial systems in developing and transition countries do not only support economic growth, but contribute in multiple ways to achieving the Millennium Development Goals (MDGs).
A financial system is one of the cornerstones of an economy. Financial institutions mobilise local resources for investments, which are an essential condition for broadly-based growth. They also ensure that cashless payments can be processed swiftly and securely.
The main framework for financial system development, seen from a development perspective, are the MDGs, among which the development goals for combating poverty, enhancing gender equality, improving access to education and protecting the environment have particular significance.
Microfinance has proved a particularly successful approach to developing the financial system and, with a portfolio of around 2.3 billion euros (as of end 2010), KfW is one of the world's foremost financiers of microfinance.
Further Information
- IFC, Internationals Finance Corporation, Worldbank Group
- AFD, Agence Française de Développement
- EBRD, European Bank for Reconstruction and Development
- EIB, European Investment Bank
- FMO, Finance for Development, Netherlands
- DFID, Department for International Development, UK
- ADB, Asian Development Bank
- AfDB, African Development Bank Group
Last updated: July 2011
