Equity investments revolutionize banking sectors in developing economies.
Development-oriented equity investment can help improve banking systems by strengthening bank governance. Swedfund Financial Markets invested in Baltic banks, aiding their restructuring. This investment, along with World Bank projects, enhanced banking skills, services, and capitalization in Estonia, Latvia, and Lithuania. Technical assistance and equity investments played key roles in promoting sound corporate governance. The success of these initiatives suggests they could be replicated in other countries facing similar banking challenges.