The Determinants of Risk Exposure When Development Finance Institutions Consider Approval of Funding to Different Development Markets—Case Study Development Bank of Southern Africa

• 作者: Njabulo Shandu Paul Kibuuka
• 来源期刊: Psychology Research
• 学科: 医学
• 关键词: development finance institution(DFI) risk exposures development markets multiple regression and South Africa
• 年，卷（期）: psyresearch_2020,（9）
• 页码范围: 359-381
• 页数: 23页
• 分类号: R69

摘要

This paper evaluates the determinants of risk exposure when development finance institutions consider approval of funding to different development markets utilising multiple regression econometric models and the Development Bank of South Africa(DBSA)as a case study.The research presents the classical development finance institution(DFI)business model and market size estimation with the contemporary DFI risk classification and enterprise risk management framework.In addition to reviewing the profile of financial and non-financial products and services,the related project cycles and the DFI credit risk pricing and mitigation approaches for the different development markets.Our results suggest that there is a correlation between the funding of under-resourced municipalities by DBSA and its exposure to financial risk though the correlation is not overwhelmingly significant,but also evidence of a negative correlation between the funding of under-resourced municipalities and the minimization of the financial risk exposure of DBSA.Likewise,there is a negative correlation between funding to all three different sizes of a municipality and ability of the DFI to absorb future losses(non-performing loan coverage ratio).The negative correlation is highest for secondary cities followed by metros and least for under resourced municipalities.The research concludes with four major recommendations of what the role of the DFI should be in enhancing access of under-resourced municipalities to development funding.