Funding Strategy of the Bank
There are four basic objectives of the World Bank’s funding strategy:
- To make sure availability of funds in the market.
- To provide the funds at the lowest possible cost to the borrowers through appropriate currency mix when interest rates are expected to rise.
- To control volatility in net income and overall loan changes.
- To provide an appropriate degree of maturity transformations between its lending and the borrowing. Maturity Transformation depicts the Bank’s capacity to lend for longer period than to borrow.