Financial Sector Development: Overview

ADB identified financial sector development as one of the five core operational areas in its long-term strategic framework, Strategy 2020. In May 2011, ADB issued the Financial Sector Operational Plan  to articulate the financial sector agendas of Strategy 2020 and guide its implementation.

ADB has been supporting Financial Sector Development (FSD) of developing member countries (DMCs) in the Asia and Pacific region through various modalities. Financial sector operations since 1966 have accounted for 11% of total ADB operations. In 2012, sovereign lending of $730 million supported development of the general financial market, capital market, and microfinance. Non-sovereign investments reached $404 million, largely supporting supply chain finance, microfinance, and guarantees. Most technical assistance was for preparing lending programs/projects, and implementing policy reforms and building capacity, while the remainder backed efforts by ADB's developing member countries to promote regional economic and financial integration.

DMCs differ widely in income level, population size and density, and the level of development in financial market. These differences have generated diverging priorities and assistance needs in FSD among DMCs, and ADB’s assistance will be tailored depending on the specific needs of each DMC. Given the broad characteristics of DMCs, the Financial Sector Operational Plan has identified five common strategic agendas for FSD, on which ADB will focus in its future financial sector operations.

This page was generated from on 01 February 2015