Financial institutions—both banks and non-bank entities—are the conduits that channel funds throughout the economy. That makes them essential partners in our efforts to expand access to finance throughout the region.
We work with financial institutions that share our commitment to promote sustainable development and reach underserved segments of the market. By enabling them to succeed, we contribute to stronger financial systems and reach sectors and beneficiaries we would otherwise not be able to serve.
Here are some of our main objectives:
Supporting green business opportunities. We want to make it easier for financial institutions to invest in renewable energy, energy efficiency, sustainable transport, sustainable agriculture and other areas essential to meeting critical climate goals.
Promoting financial inclusion. We work with our partners to provide greater access to finance for micro, small, and medium-sized enterprises, especially those led by women.
Opening doors to affordable housing. Financial institutions need support to address the region’s enormous housing gap, which the IDB has estimated at more than $300 billion per year.
Spurring investment in health, education and other infrastructure. We encourage our partners to develop financial products to increase access to quality education and finance health infrastructure and services.
Expanding trade. We are helping financial institutions facilitate the participation of Latin American and Caribbean companies in the world economy, primarily through the Trade Finance Facilitation Program (TFFP).
Because we focus exclusively on Latin America and the Caribbean and have a local presence throughout the region, we understand the multiple challenges the sector faces and can tailor our support to meet local needs. We offer a full array of financial products and advisory services designed to tackle specific problems and seize specific opportunities.The support we offer might come in the form of medium or long-term financing, guarantees or equity or mezzanine investment. In addition to providing funding ourselves, we mobilize other funds—including concessional donor resources—to increase investment in the areas we consider priorities.
Our advisory services support the financial sector’s efforts to incorporate best practices that will promote gender equality and diversity, expand climate-smart investment and support micro, small and medium-sized businesses. We also help financial institutions strengthen the capability to operate in the digital space and use technologies such as online payment platforms, mobile banking and innovative credit-assessment methodologies.
At a time when twice as many adults in Latin America and the Caribbean have smartphones as have bank accounts, financial institutions that can effectively deliver services via cell phones are better positioned to reach potential new customers and meet their evolving needs.