What is a A development financial institution (DFI)?
A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis.
NID Bank can play a crucial role in financing private and public sector investments in
developing countries, in the form of higher risk loans, equity positions, and guarantees.
The Bank will provide finance to the private sector for investments that promote development and to help companies to invest, .This Bank will include socially responsible investing and impact investing criteria into its mandates. Governments often use development banks to form part of their development aid or economic development initiatives.
The Bank in its development aim will combine the roles of a, national development bank, bilateral development bank, microfinance institutions, Community development financial institution and revolving loan funds.
Development agenda include:
- Financing community development through Institutions which fund low-income areas.
- International financial institutions conducting development-oriented finance on a bilateral or multilateral basis.
- Supporting government-owned financial institution that provides financing for economic development.
- Multi lateral development projects set up by a group of countries and often operate under international laws.
Standard products consist of loans, guarantees, equity and quasi‐equity, risk management products and technical assistance. Other products include a Trade Finance Initiative as part of the Bank’s response to the financial needs. Their main features, basic terms and conditions are presented in this brochure.
We hope that this information will enhance clients understanding of the Bank’s financial products and services, thereby enabling them to fully benefit from the financial assistance provided by the Bank.