Presentation of the article "Blended Binds: How DFI's support programs stiffle bank lending in Africa"

November 19, 2024, Paris

Florian Léon, a research offiicer at FERDI, will present the paper "Blended Binds: How DFI's Support Programs Stifle Bank Lending in Africa" at the World Bank headquarters in Paris (closed meeting).

 This paper analyzes the impact of development finance institutions' (DFIs) support on the lending activity of private banks in Africa. This tool is essential for supporting SMEs in developing countries. The study highlights a slowdown in bank lending following DFI support. Additional analyses suggest that this counterintuitive outcome may be due to absorption challenges faced by supported banks. This study provides crucial insights into assessing DFIs' performance in improving credit access in Africa.