About Development Finance

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About Development Finance

As an extension and further developed form of policy finance, development finance seeks to serve the national development strategy, supported by national credit, adopting a market-oriented model, and following the principle of “principal preservation and marginal profit”. It takes midium-to-long term investment and financing as the main vehicle. It boasts unique advantages in helping the government achieve its development goals, making up for market failures, providing public goods, ensuring efficient social resources allocation and tackling economic cyclicalvolatility. Therefore, it plays an indispensable role the economic financial system.

Development finance has the following features:

Serving national strategies as its top priority. It always puts national interests first, commits to solve bottlenecks in socioeconomic development, and facilitates the implementation of national strategies while ensuring the bank’s own development.

Relying on national credit. It transforms deposits at commercial banks and private capital into centralized long-term funding to support national development.

Market-oriented operations as the basic model – It serves as a bridge between the government and the market, and facilitates sustainable market-based operations by making strategic plans and developing the market, credit and institutions.

“Principal preservation and marginal profit” as the operating principle. – CDB does not seek maximum profits. It strives for financial balance while accommodating certain profit targets and strictly managing risks.

Medium-to-long term investment and financing as the vehicle .CDB leverages its professional advantages, supports major projects, works to avoid maturity mismatch and gives full play to the leading role played by long-term funding, guiding private capital to support relevant projects.