WFDFI  -  Action Program

4. DEVELOPMENT BANKING IN THE FUTURE

1. Standards of Excellence. The objective of this project is to invite all banks, institutions, and supporters of development in the world to develop standards of excellence by which they appraise and evaluate their performance. To this effect, WFDFI will start compiling, through the regional associations, a compendium of benchmarks of each association’s member institutions, building on progress already made in this area by ADFIAP.

2. Exchange Risk. Development banks have revealed a growing need for funding through access to international sources (markets and institutions), with the consequent exchange risk.
   
   In this regard, the World Federation may carry out a study of the ways and means for establishing an institutional mechanism to provide foreign exchange risk coverage to development banks.
   
   This scheme or financial institution would help individual development banks to obtain exchange risk coverage as a hedge against this risk by selling such coverage to specific institutions on a cost-recovery or commercial basis. Possibly, an already existing institution, like MIGA or an international bank, could be induced to offer that coverage.
    

3. Credit Rating System. The regional associations and the WFDFI will ask accredited international credit rating agencies to develop a rating system for national development banks, in order to shore up the progress of development financing toward the common goal of achieving sustainable development in the world.

4. Code of Ethics. The World Federation will collect contributions and experiences in this sector and similar ones in order to advance the work of formulating and adopting ethical principles for the development banking system.