Financial institutions

Our work in financial institutions

An advanced economy needs a strong and healthy financial sector that fulfils the critical tasks of conserving savings and allocating capital to entrepreneurs and investments. It must also offer a variety of financing channels to economic actors: banks, an active stock market, specialised financial services such as leasing, factoring and consumer finance, and a developed insurance sector.

About us

The EBRD pursues two main goals in the financial sector in its countries of operation:

We work to build an advanced, strongly capitalised and well-regulated financial sector, in a way that respects each economy's unique needs and specific culture and circumstances. We invest in equity and other capital instruments in banks and other financial services firms, underpinned by bespoke policy interventions with firms, regulators and authorities.

We develop partnerships with the financial sector to tap its unrivalled potential as a powerful distributor of finance to the real economy. We leverage its deep local presence to respond quickly to emergencies. We also finance thousands of trade finance transactions a year and are leaders in building and training a global community of trade finance professionals.

Sustainable finance

The EBRD uses a range of instruments to provide capital and know-how for sustainable finance in various types of financial institution, including banks, microfinance institutions, collective investment vehicles such as funds (equity and debt), and non-banking financial institutions such as leasing firms, stock exchanges and insurance companies.

Trade facilitation programme

Under the programme, we provide guarantees to international commercial banks, thereby covering the political and commercial payment risk of transactions undertaken by partner banks in the EBRD regions.

2924

Number of projects to date

€88,753m

Cumulative EBRD investment

€46,279m

Cumulative disbursements

99%

Private sector share of portfolio

787

Number of active portfolio operations

€14,801m

Current portfolio of projects

€10,657m

Operating assets

Equity share of portfolio

Overview

Strengthening the banking sector

A strong banking sector is crucial for a modern financial system. The EBRD enhances banks through:

Investments and technical assistance: we invest in banks through equity and other capital instruments, and provide technical assistance to improve
governance and operational standards.
Regulatory collaboration: we work with sector regulators across our countries of operation to establish and maintain high standards for
banking operations.
Privatisation: we provide capital support to improve the resilience of financial institutions and aid in the privatisation of state-owned banks.

Diversifying financial solutions

A comprehensive financial system includes reliable alternatives to traditional banking:

Specialised finance: we support the development of leasing and factoring companies and other specialised finance firms, providing alternatives to traditional banking.
Capital markets development: we promote local capital markets to enable companies to access capital directly from investors, enhancing financial market sophistication and accessibility.

Key initiatives and programmes

Our initiatives promote sustainable growth in the financial sector:

Trade Facilitation Programme (TFP): this programme supports international trade by providing guarantees and short-term loans to partner banks, along with trade finance training for local bank employees.

Green Economy Financing Facilities (GEFFs): in collaboration with the Energy Efficiency and Climate Change team, GEFFs finance projects that improve energy efficiency and prepare financial institutions for the impacts of climate change.

Support for SMEs and microfinance: we support small and medium-sized enterprises through lending programmes targeting local banks and leasing companies, including microfinance initiatives and regional Women in Business programmes.

Green and sustainability bonds: we provide an anchor investment to green and sustainability bonds across a variety of markets and currencies.

Covered and structured bonds: we support the development of structured finance markets.

Future-proofing the financial sector

To ensure resilience and preparedness for future challenges, we focus on:

Neo-banks and fintech: we invest in neo-banks and non-bank fintech to stimulate market evolution and improve competitiveness and reach.
Digitalisation of financial services: we support financial institutions in their digitalisation efforts, enhancing their resilience and operational effectiveness.

Commitment to inclusive and sustainable development

We aim to create an inclusive and sustainable financial sector, aligned with global best practices:

Inclusive financial institutions: we promote inclusive financial practices through programmes such as Women in Business and Youth in Business and facilitate the development of inclusive workplace standards. We develop ad hoc products for our countries’ differnt situations, such as the veterans reintegration programme in Ukraine or the earthquake relief facility in Türkiye.
Policy dialogue and regulatory reform: we engage in policy dialogue to shape national inclusion strategies and regulatory environments conducive to the growth of under-represented business owners and managers.

Francis Malige, Managing Director

Address:

Five Bank Street, London

Media enquiries

Telephone:

+44 20 7338 7805

Email:

press@ebrd.com

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Financial institutions

About us

Work with us

Project finance

Procurement notices

More ways to work with the EBRD

Overview

Strengthening the banking sector

Diversifying financial solutions

Key initiatives and programmes

Future-proofing the financial sector

Commitment to inclusive and sustainable development

Financial institutions

About us

Work with us

Project finance

Procurement notices

More ways to work with the EBRD

Overview

Strengthening the banking sector

Diversifying financial solutions

Key initiatives and programmes

Future-proofing the financial sector

Commitment to inclusive and sustainable development

Sustainable Finance Hub

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