Inside the Multi-trillion Dollar Sector Behind Development Financing | Moody’s Ratings
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FinTech Strategy & Innovation70%
Key Takeaways
Examines the role of multilateral financial institutions in development financing, discussing trends and challenges in the sector
Full Transcript
So these MFIs, they have been around for multiple decades. So why are they changing now? >> So yes, the mandates the organizations are not new. I think what has driven the change is the common diagnostic that the development financing needs across the world are all significant. This is really low middle income countries that need financing to invest in healthcare, in education, in climate adaptation and and really a whole set of infrastructure and and services where the private sector is not always willing or able to provide a financing and MFIs play a critical role. And the shareholders of these MFIs have seen that and have called on them to really look how can they use their balance sheet, how can they use their organizations more effectively and MFIs have answered that call.
Original Description
Multilateral financial institutions like the World Bank step in to fund projects and services that the private sector is not always willing to or able to support.
While MFIs have been around for decades, the sector is in transition — at a time when financing needs around the world remain significant for healthcare, education, climate adaptation and infrastructure.
In this conversation, we explain why wide-ranging changes in the ways MFIs access and manage capital are critical to understanding their potential credit risks and why Moody’s is updating our methodology.
© 2026 Moody’s Corporation and/or its licensors and affiliates. All rights reserved. Go to www.moodys.com/pages/globaldisclaimer.aspx for complete legal terms and conditions governing use of Moody’s information made available in this video.
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