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Multilateral Development Bank (MDB) - Explained

What is the Multi-lateral Development Bank?

Written by Jason Gordon

Updated at July 22nd, 2021

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Table of Contents

What is a Multilateral Development Bank?Major Multilateral Development Banks

What is a Multilateral Development Bank?

A multilateral development bank (MDB) refers to an international financial institution, chartered by at least two nations, in order to promote economic development and growth in poorer or less-developed countries. Important takeaways:

  • Multilateral development banks came into existence after World War II for revamping war-struck countries, and promoting economic stability.
  • MDBs offer funds for improving energy, education, infrastructure, etc. in developing nations.
  • MDBs operate internationally and holds assets of trillions of dollars.

Rather than operating for maximizing shareholders wealth, multilateral development bank emphasize developing a nation and solving critical issues such as poverty, unemployment, economic inequality, etc. 

These banks offer grants and loans to nations with minimal or no interest rates, which they can use in developing infrastructure, promoting education, making environment sustainable, and a lot more.

Back to: INTERNATIONAL BUSINESS, LAW, & RELATIONS

Major Multilateral Development Banks

Here is the list of top-notch multilateral development banks with the total assets they maintained as of Dec. 31, 2017. However, the World Bank Group is an exception that shows its assets as on Dec. 31, 2018.

  • European Investment Bank with an asset size of $621.9 billion
  • International Bank for Reconstruction and Development, World Bank Group with assets worth $413.3 billion
  • International Development Association, World Bank Group with $201.6 billion
  • Asian Development Bank with $182.4 billion
  • Inter-American Development Bank with $126.2 billion
  • European Bank for Reconstruction and Development with total assets of $66.6 billion
  • African Development Bank with $45.3 billion
  • Islamic Development Bank with $27.4 billion assets
  • Asian Infrastructure Investment Bank with $19.0 billion
  • New Development Bank having total assets of $10.2 billion
  • Central American Bank for Economic Integration having assets of $9.7 billion
mdbs multilateral development bank

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