Corporate Governance Rating System
The Asian financial crisis of 1997 not only stressed the need for corporate reform in the business community but also brought the need for reform within national development finance institutions (DFIs).
Set up by their governments as specialized financial institutions, DFIs provide long-term financing and technical assistance to enterprises that contribute to the country’s economic development and growth but which are inadequately supported by other financial institutions during their formative years. Thus, DFIs have an important role in a country’s development and are an integral part of its financial system.
DFIs also play a central role in advancing corporate reforms in the region. Unlike regular commercial banks, development banks not only provide financial assistance to enterprises, but they are also involved in training and providing management expertise. Thus, to be effective in promoting good corporate governance they must institute good corporate governance practices themselves.
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