Overview
An estimated $8-10 trillion annual investment is required for developing countries to achieve the Sustainable Development Goals (SDGs) by 2030. Developing and strengthening capital markets can help mobilize private financing and channel it to job-creating industries and strategic sectors such as housing, health, and infrastructure.
The World Bank Group assists countries in developing deep and resilient capital markets which can contribute to economic growth and financial stability. This support includes assistance for the development of deep and liquid government bond markets, the development of products and markets for corporate financing, such as equity and corporate bonds, as well as the development of products and solutions to mobilize financing to strategic sectors, including small and medium-sized enterprises.
Well-functioning capital markets require a sound policy and regulatory framework, and synchronization of robust regulatory framework with institutional capacity to enforce rules. In many cases, de-risking tools and/or incentives are needed to crowd in private capital. We also work with governments in identifying whether such types of interventions are needed, and the mechanisms to implement them in a sustainable way. As part of this, we support the establishment of Sovereign Wealth Funds and Strategic Investment Funds (SIFs), including green SIFs, in client countries.
What We Do
We offer a range of services and products tailored to the specific development needs of our client countries:
• Capital Markets Development Advisory Services: We provide advisory services to countries in all regions and at different levels of development. This includes advising governments on regulatory and policy framework for overall capital markets development.
• Capital Markets Diagnostics: Through the Financial Sector Assessment Program (FSAP), we analyze the challenges and opportunities for capital markets development.
• Capital Markets Regulatory Assessments: Through the FSAP program we also analyze the robustness of the regulatory framework and supervisory program for the securities markets of specific countries with a view to assessing whether they contribute to investor protection, building liquid markets and promoting financial stability.
• Product Development: Innovative financial products are necessary to help countries meet development finance needs, leverage the private sector as financier, operator, or service provider in SDG related areas, and effectively manage risks. We collaborate within the World Bank and with outside partners to devise strategies for product development and design innovative products that play a crucial role in the further development of capital markets.
• Joint Capital Markets Program (JCAP): The World Bank and the IFC launched the Joint Capital Markets program (“J-CAP”) initiative in mid-2017 to affirm their commitment to the development of local capital markets. Through the J-CAP, the WBG is providing a “one-stop shop” solution to countries as they embark on capital markets development efforts. Its distinctive feature is the combined use of advisory and transaction support to mobilize private sector financing via capital markets to key strategic sectors agreed with the government authorities, be it corporate, infrastructure, housing, SMEs or climate change financing. .
• Providing Technical Assistance on the Strategy of Establishing SIFs and SWFs: Conducting feasibility studies of SIFs, supporting the establishment of SIFs and/or strengthening the existing SIFs, and designing and implementing fund management advisory agreements with SIFs.
• Developing the Eco-System for Private Equity/Venture Capital industry: Carrying out assessments of the PE/VC industry, supporting design and reform of legal and regulatory framework for PE/VC fund operations, and designing and following up on IBRD/IDA loans and credits to finance hybrid PE/VC fund programs.
• Knowledge Management: We disseminate the knowledge acquired through project implementation and research through policy notes, thought-leadership analyses and country studies as well as through conferences, workshops, and internal & external training sessions.
• Global Engagements: The WB has a long-standing engagement with IOSCO, which seeks to ensure that the standards for securities markets regulation and supervision remain proportionate and can effectively be applied in emerging markets. We also engage with the International Forum of Sovereign Wealth Funds (IFSWF). The WB has contributed to the G20 particularly in regard to the development of local currency bond markets (LCBM) where a diagnostic tool was developed and annual notes on trends in LCBMs are being delivered. The WBG also participates in the FSB, and in particular in the shadow banking work streams to ensure that capital markets develop under solid footing.
Last Updated: Sep 16, 2025
