Strategic Management of Policy-Based Lending, 2022–2024

Institutional Document | April 2022

This paper proposes measures to enhance policy-based lending (PBL) quality and impact, strengthen Board of Directors oversight of PBL operations and improve the contribution of PBL to ADB’s Corporate Results Framework (CRF).

Asian Development Bank’s (ADB’s) policy-based lending (PBL) plays a critical role in achieving lasting development impact in developing member countries (DMCs).

To support DMCs achieve a green, resilient and inclusive recovery while ensuring ADB remains within a sustainable long-run financial trajectory, this paper proposes to replace ADB’s regular PBL ceiling of 20.0% of sovereign operations on a 3-year rolling average basis, with a forward-looking ceiling of $18 billion in PBL commitments between 2022 to 2024.


  • Executive Summary
  • Introduction
  • Economic and Social Impact of the COVID-19 Pandemic on Asia and the Pacific
  • ADB's Policy-Based Lending Types and Ceilings
  • Policy-Based Lending Operations, 2019–2021
  • Projected Demand for Policy-Based Lending, 2022–2024
  • Enhancing the Role of Policy-Based Lending for Crisis Response
  • Strategic Management of Policy-Based Lending, 2022‒2024
  • Increasing Contribution of Policy-Based Lending to Strategy 2030 Objectives
  • Strengthening Policy-Based Lending Design Quality
  • Recommendation

Additional Details

  • ADB administration and governance

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