The Renaissance Era of Public Development Banks are going through because of new crisis
Public Development Banks are following an ongoing evolution path. Since 2019 they shifted strategies, investments patterns and operating modalities to focus on achieving Sustainable Development Goals (SDGs) while also responding to the different crises that are experienced globally. Now their role has become central in times of economical, social and energetic shocks.
During the Covid-19 crisis, researchers noticed a pattern: PDBs were able to intervene immediately better than national banks and financial institutions, thanks to their capacities and the expertise.
Times of crisis require substantial solutions. It has been proved that, to help their governments support the wealth and the social shocks, 3 out of 4 banks, even the small ones, increased their commitment. This was possible in many cases because of the fundamental cooperation between PDBs, that used the synergy of their skills and were able to scale up and spread out fast, making it possible to approach a countercyclical fiscal policy. </