Financial Institutions

Role of Financial Institution – Asian Development Bank

Financial Institution is an integral part of any country. They are the building pillars of a country as they help in building and stabilizing the economy and the market. One of such financial institution is The Asian Development Bank (ADB). Asian Development Bank plays an important role at a wide level. In this article, we will look at the various aspects, functions, and roles of the Asian Development Bank (ADB).

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General Features of Financial Institutions

  1. Firstly, financial Institutions cannot take loans from the general public from deposits or other payable funds.
  2. Secondly, they are major contributors to financial leasing.
  3. Thirdly, Financial Institutions provide a lot of payment services through both online as well as offline modes.
  4. Lastly, their licensing framework is of 3 months or 90 days.

Asian Development Bank

General Role of Asian Development Bank

The very existence of the Asian Development Bank revolves around the fulfilment of a specif purpose. The specific purpose is to foster the economic growth of the Asian and the Pacific regions.

Its basic objective is to encourage economic and financial co-operation among the member countries. It helps them to start new projects without any fear of lack of finance.

Browse more Topics under Financial Institutions

Learn more about State Finance Corporation here in detail

Functions of the Asian Development Bank

1. Economic and Social Advancement

This bank has a membership program under which there are various benefits available for the members’ countries.

These benefits include providing loan and investment at a concessional rate. One of the functions of the ADB is to provide loans and equity investments for the economic and social upgrade of developing member countries.

2. Technical Assistance

Most of the countries require a lot of services like advisory services. Moreover, they while operating at the international level, most of the countries require technical support too.

One of the functions of the Asian Development Bank is to provide technical assistance for the preparation and implementation of development projects and advisory services.

3. Investment Promotion

Firstly, the Asian Development Bank provides a lot of services to the member countries in the form of investments. At the same time, they also provide some specific sort of investment facilities for development purposes.

4. Support in Policies and Plans

Plans and policies play an important role in any country. There are various domestic agencies providing help to the authorities while framing various policies.

But there is a need for some international agencies at the same time for the same function. One of the main functions of the ADB is to provide help to the member countries in framing policies and plans at the international level.

Objectives of the Asian Development Bank

  1. Firstly, its objective is to help the member countries in countering poverty.  Hence, it helps them in poverty reduction and country development.
  2. If both the social as well as the economic aspects of a country is rising, then it leads to economic growth. One of the objectives is to help the countries to go towards economic growth.
  3. Thirdly, their objective is to support human development.
  4. Moreover, they believe in preserving and protecting the environment.
  5. Lastly, they work and wish to continue working towards empowering women and improving their status in society.

Solved Question on Asian Development Bank

Question: How the Asian Development Bank is working for smaller or less developed countries?

Answer: The Asian Development Bank (ADB) gives special attention to the needs of the smaller and less developed countries. It gives priority to the regional and sub-regional programmes which lead to the harmonious economic growth of the region.

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