MDBs Keep Strong Financial Buffers as 2026 Report Examines Development Capacity

The report gives shareholders and G20 members a common reference for assessing the banks’ financial positions and considering how they can strengthen development financing.

Multilateral development banks maintained strong capital and liquidity positions throughout 2025, giving them a stable financial base to continue supporting their clients, according to the 2026 Multilateral Development Banks Comparison Report. The African Development Bank Group welcomed the findings, which bring together financial data from 15 participating institutions.

The report gives shareholders and G20 members a common reference for assessing the banks' financial positions and considering how they can strengthen development financing. Its findings also underline the need to look beyond individual figures, since the institutions have different mandates and business models.

A Shared View of Development Banks' Finances

Produced through the Global Risk and Finance Forum, known as GRaFF, the report includes data from the African Development Bank Group and 14 other multilateral development banks. The Asian Development Bank published the report on behalf of GRaFF, with coordination carried out jointly with the European Bank for Reconstruction and Development.

Bringing the information together allows shareholders and policymakers to examine the institutions through a shared financial reference, supporting discussions about their capacity to finance development and remain dependable lenders during difficult economic conditions.

Strong Capital Supports Reliable Development Financing

The report's central finding is that MDBs retained strong capital and liquidity positions during 2025, enabling them to remain a stable source of financing for their clients. For the African Development Bank Group, that financial strength supports its ability to respond to the continent's development needs.

"Strong financial foundations underpin our ability to support Africa's development ambitions," said Hassatou Diop N'Sele, the Bank Group's Vice President for Finance and Chief Financial Officer. N'Sele said the report improves transparency and helps inform decisions about using capital more effectively without weakening the resilience institutions need to support countries through challenging economic conditions.

New Trend Analysis Adds Perspective to the Numbers

Drawing primarily on year-end 2025 data, the report examines capital adequacy, liquidity, portfolio characteristics, risk transfers and credit rating assessments. This edition introduces trend analysis for selected financial ratios, adding a view of how those measures have changed over time to the comparison of financial positions.

The publication supports the G20 recommendation for annual capital benchmarking, part of broader efforts to strengthen MDBs' capacity to finance development. A regular comparison provides a basis for examining financial resources and discussing how those resources can support lending.

Different Mandates Require Careful Comparisons

The report cautions against judging an institution's financial strength through a single indicator. Differences in mandates and business models matter when interpreting the figures, so the data needs to be considered in the context of each bank's role and operations.

That distinction is central to making the comparison useful: a shared set of measures can improve transparency, but individual figures do not tell the whole story. For shareholders and G20 members, the report provides evidence to inform decisions about expanding development financing and maintaining the financial strength that makes sustained support possible.