Capital Markets

Developing and strengthening capital markets is essential for mobilizing the financing needed to fuel job-creating industries and to fund needs for housing, health, and infrastructure.

The World Bank Group assists countries in developing resilient capital markets, which can contribute to economic growth and financial stability. This support includes assistance for the development of deep and liquid government bond markets, the development of products and markets for corporate financing, such as equity and corporate bonds, as well as the development of products and solutions to mobilize financing to strategic sectors, including small and medium-sized enterprises.

Well-functioning capital markets require a sound policy and regulatory framework, and a combination of a robust regulatory framework with institutional capacity to enforce rules. In many cases, de-risking tools and/or incentives may be needed to crowd in private capital. We also work with governments to identify whether such types of interventions are needed, and the mechanisms to implement them in a sustainable way. As part of this, we support the establishment of Sovereign Wealth Funds and Strategic Investment Funds (SIFs), including green SIFs, in client countries.

The World Bank Group offers a range of services and products tailored to the specific development needs of our client countries. We provide advisory services to countries in all regions and at different levels of development. This includes advising governments on regulatory and policy framework for overall capital markets development.

Through the Financial Sector Assessment Program, we analyze the challenges and opportunities for capital markets development. We also analyze the robustness of the regulatory framework and supervisory program for the securities markets of specific countries, with a view to assessing whether they contribute to investor protection, building liquid markets and promoting financial stability.

Innovative financial products are necessary to help countries meet development finance needs, leverage the private sector as financier, operator, or service provider, and effectively manage risks. We collaborate with partners to devise strategies for product development and design innovative products that play a crucial role in the further development of capital markets.

The Joint Capital Markets program (J-CAP) combines advisory and financial support to mobilize private sector financing via capital markets to key strategic sectors agreed with the government authorities, such as corporate, infrastructure, housing, SMEs or climate change financing.

The World Bank Group launched the Joint Capital Markets (J-CAP) initiative in mid-2017 to affirm its commitment to the development of local capital markets. Through the J-CAP, the World Bank Group is providing a “one-stop shop” solution to countries as they embark on capital markets development efforts. Its distinctive feature is the combined use of advisory and transaction support to mobilize private sector financing via capital markets to key strategic sectors agreed with government authorities, be it corporate, infrastructure, housing, SMEs or climate change financing.

For almost three decades, the Financial Sector Assessment Program has been a cornerstone of global efforts to promote strong, stable, and inclusive financial systems. Jointly launched by the World Bank and the International Monetary Fund (IMF) in 1999, FSAPs helps countries identify and address financial system risks and development challenges—laying the groundwork for sustainable growth, financial resilience, and shared prosperity.For almost three decades, the Financial Sector Assessment Program has been a cornerstone of global efforts to promote strong, stable, and inclusive financial systems. Jointly launched by the World Bank and the International Monetary Fund (IMF) in 1999, FSAPs helps countries identify and address financial system risks and development challenges—laying the groundwork for sustainable growth, financial resilience, and shared prosperity.

Financial Sector

Sound financial systems underpin economic growth and are crucial to the World Bank Group’s mission of alleviating poverty.

Explore our Financial Sector Investments