New study finds banks show strong potential to help address climate change

WASHINGTON, CMC - A new study has found that public development banks (PDBs) in Latin America and the Caribbean provide more than US$700 billion in loans annually and possess the operational and financial heft to expand into areas, such as climate change mitigation and productive development policies.
The study, released by the Inter-American Development Bank (IDB), also urges these institutions to continue to strengthen their capacity, particularly in corporate governance area, and to demonstrate their development effectiveness in a way that further mobilizes private sector resources and supports the most vulnerable economic sectors.
The study titled “Public Development Banks: Toward a New Paradigm,” examines the relevance of the PDBs in today's financial systems, their financial and non-financial instruments, institutional factors key to achieving success, and how they can address new challenges such as climate change mitigation.