Global Financial Development Report

The third Global Financial Development Report contributes to the ongoing debate on the role of long-term finance in sustaining economic development and ensuring shared prosperity. This report provides a nuanced, practical, and evidence-based approach to financial sector policy. It offers new research and data that help fill gaps in the knowledge on long-term finance. Read More »

Main Messages

  • Use of long-term finance—frequently defined as all financing for a time frame exceeding one year—is more limited in developing countries, particularly among smaller firms and poorer individuals.
  • Where it exists, the bulk of long-term finance is provided by banks; use of equity, including private equity, is limited for firms of all sizes.
  • The global financial crisis of 2008 has also led to a reduction in leverage and use of long-term debt for developing country firms.
  • Market failures and policy distortions have a disproportionate effect on long-term finance, suggesting an important role for policies that address these failures and distortions.
  • Sustainably extending the maturity structure of finance is a key policy challenge since long-term finance can be an important contributor to economic growth and shared prosperity.

Read the complete messages.


The Report