The World Bank is hardly your typical bank. And amid all the market mayhem, the Washington-based anti-poverty lender is fairly isolated from the chaos in the financial sector thanks to everything that makes it different.
First off, the multilateral lender does not take in deposits from consumers and companies — a critical distinction from your local bank, which aims to make a profit off your savings. Rather, its job is to take money given to it by member states, and using the magic of markets, turn that into far greater sums to spur lending for global development. Currently, it has about $230 billion in loans to countries.
However, what really makes it stand out is its top-notch risk management, validated by its sustained AAA credit rating. And it comes into the spotlight now, in a moment of turmoil.
About the author
Shabtai Gold
Shabtai Gold is a Senior Reporter based in Washington. He covers multilateral development banks, with a focus on the World Bank, along with trends in development finance. Prior to Devex, he worked for the German Press Agency, dpa, for more than a decade, with stints in Africa, Europe, and the Middle East, before relocating to Washington to cover politics and business.
