Regional development financial institutions and the challenges of the national development financial system

Abstract This paper addresses the challenges faced by the Regional Development Financial Institutions (RDFI) in Brazil, assessing both the dilemmas and the conditions for the improvement of long-term financing in the country. Propositions for public policy aimed at strengthening the regional institutions, which is the main focus of the paper, express the contents of the debates held at the Brazilian Development Association, the development institutions’ forum. The paper highlights the importance of the National System of Development Financial Institutions, traces a brief history of the Brazilian RDFI to the present day, and points out both limitations to be overcome and conditions for the regional DFI to assume a more effective role in national development.