The Development Of Policy Development Banks: International Experience And China's Respondence

After the 2th World War, an important measure that developing countries took to make up the market failure and promote economic growth is to establish development bank. But most development banks do not provide financial services more effectively in improving the efficient allocation of recourse. However, KFW(KreditanstaIt Fuer Wiederaufbau), DBJ (Development Bank of Japan)and KDB(Korea Development Bank) are successful exceptions. Why could these policy banks make success comparatively? Their experience is very useful for the progress of China Development Bank.The characters of these successful banks are as fallows: first, they are established on the base of special law; second, they are supervised by central government, not central bank. The central government offers capital and credit guarantee for them. Third, they stick to the principles of complement, neutrality and nonprofit. Forth, the key role of development banks is to provide long-term, preferential and large loads that must be used to invest in special projects.By researching the perform of KFW, DBJ and KDB, I think that some factors are very important for the success of them. These factors are as fallows: accorded with the need of economic growth; made up the market drawbacks; carried out the policies; performed by law; stuck to the principles of complement, neutrality and nonprofit; backed up by the central government; equipped with enough capital; kept up with economic environment.Having been established for ten years, China Development Bank (CDB) has been the principal policy bank in China, financing key infrastructure projects, fulfilling their social responsibilities and supporting government policy objectives. At the same time, there are some problems that will embarrass the forwardness of CDB, including the lack of the policy bank law, the deviation of CDB's position and role in this period of globalization and historic economic change; and the potential risk. The best way to maintain CDB's relevance in the Chinese economy is to make the special law for CDB, renew the fours on the CDB's fundamental objects, provide more support and intensify the administration.