In Japan, the government owned Japan Development Bank was established in 1951 for reconstruction of the economy. In Korea and Singapore also DFIs were set up in 1960s with the main aim of rapid industrial development.
The emergence of DFIs in the then developing economies also coincided with a period when the capital market, as a source of long term funding, was yet to stabilize. Based on the European model, the success of the DFIs in the overseas territories provided strong impetus for creation of DFIs in India after independence. 11.