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Financial system development

Fundamental for sound economies

The overarching goal of KfW Development Bank is to promote sustainable, pro-poor financial systems. In addition to contributing to greater economic growth, functioning financial systems in developing and emerging countries play a major role in achieving development goals in a myriad of ways. A well-functioning financial system is one of the key cornerstones of an economy. Financial institutions mobilise resources for investments, which are paramount for sustainable growth. They also ensure non-cash payments can be processed swiftly and safely. To promote the sustainable development of financial systems in its partner countries, KfW concentrates on three areas by employing both classic and innovative financing tools: in addition to the micro level which concerns strengthening individual financial institutions, KfW carries out projects on the meso and macro level to stabilise the macro-economic environment. In doing so, the focus is primarily on four areas: micro-financing of micro enterprises, agricultural and environmental financing and Responsible Finance.

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