Development banks : distinctiveness and heterogeneity of financial performance

Porenta, Jan (author), Rant, Vasja (author)

This paper offers a comprehensive analysis of financial performance of development banks encompassing profitability, cost efficiency, liquidity, loan quality, loan loss provisioning and capital adequacy. We examine differences in financial performance between development banks and commercial financial institutions and extend the analysis to study the relationship between financial performance and heterogeneity within the development banking sector. Heterogeneity in bank size, operational focus, level of ownership and geographical scope of operation are shown to be associated with financial performance of development banks. Moreover, there are notable differences based on their specific mandates. Development banks following narrow mandates tend to have lower cost efficiency indicators and experience lower loan quality, provisioning adequacy and capital adequacy compared to their broadly mandated counterparts.

• Language: English
• Keywords: banks, finance, sustainability, development banks, socio-economic development, financial performance, sustainable banking, development finance
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2025
• Number of pages: 40 str.
• Numbering: Vol. 104, iss. 104716
• PID: 20.500.12556/RUL-179699
• UDC: 338:336
• ISSN on article: 1059-0560
• DOI: 10.1016/j.iref.2025.104716
• COBISS.SI-ID: 256078851
• Publication date in RUL: 20.02.2026

Record is a part of a journal

• Title: International review of economics and finance
• Shortened title: Int. rev. econ. finance
• Publisher: Elsevier
• ISSN: 1059-0560
• COBISS.SI-ID: 1019157

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Keywords: banke, finance, trajnostna uspešnost

Projects

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: P5-0161
• Name: Izzivi vlagateljev, podjetij, finančnih institucij in države v negotovem evropskem gospodarskem okolju

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: V5-2261
• Name: Modeliranje vplačil novih virov lastnih sredstev EU po državah članicah